A BELOVED fast food chain has filed for bankruptcy, putting multiple locations at risk.
It comes as various chicken chains go to war for the top spot in the market.
A beloved fast food chain has filed for bankruptcy, putting multiple locations at risk[/caption]
Harold’s Chicken Shack is a Chicago staple, serving fried chicken since 1950.
It currently boasts 46 locations across eight states, including Arizona, California, Georgia, Illinois, Indiana, Missouri, Nevada and Texas.
But that legacy has been put at risk following a franchisee in Illinois being forced to file for Chapter 11 bankruptcy protection.
By doing so, it’s put three suburban Chicago spots at risk.
The operator, De’nsite, runs three Harold’s Chicken spots in the area, namely in Homewood, South Holland, and Olympia Fields.
In the bankruptcy filing, De’nsite cited up to $50,000 in assets and between $500,000 and $1 million in liabilities.
This isn’t the first Harold’s Chicken to take this decision, however, as one in Las Vegas, Nevada, did the same thing back in October.
Another location based in Chicago was closed by the Illinois Department of Revenue in June 2024.
This happened due to tax issues and was just the latest closure at the time.
In 2020, a Harold’s Chicken closed on 87th Street after the landlord raised the price of the land by 40%.
CHICKEN WARS
The struggles of Harold’s Chicken can be said to reflect a larger trend in the fast food industry.
Some chains are struggling to stay afloat, like Sticky’s, which filed for bankruptcy in 2024 and is at risk of losing all its locations.
The New York-based chicken chain is known among customers for its farm‑raised, antibiotic‑free chicken and lineup of sauces.
But Sticky’s was hit hard by the pandemic, and needs a way out.
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
JoAnn Fabrics and Crafts announced it would close all 800 stores after filing for bankruptcy twice in a year.
Hooters announced plans to file for Chapter 11 bankruptcy protection in February.
Liberated Brands announced that it would be closing all 122 retail locations for its boardsport fashion brands Quiksilver, Billabong, and Volcom.
Forever 21 shut down its headquarters after filing for bankruptcy and laying off 358 employees.
Macy’s announced major restructuring plans amid mass store closures.
It seemed it had one through a deal with Harker Palmer Investors, but the deal stalled, and without it, the chain will have to fully liquidate.
But while chains like Sticky’s struggle, others like Bojangles are expanding aggressively.
The chain is looking to open 20 new locations over the next decade across all five boroughs of New York City.
Another 35 will open in New Jersey.
The first of these new Bojangles locations will open this winter in Flatbush, Brooklyn.
Bojangles CEO Jose Armario said: “It’s a monumental moment, now that we’re entering the New York metropolitan area again.
“The East Coast is craving the authentic, Southern charm that Bojangles delivers, and we’re excited to introduce locals to something new.
“The franchise groups behind this expansion are the exact partners we want to grow with – they bring the industry know-how, operational experience and leadership needed to grow Bojangles in a bustling market like New York.
“Supporting and leading our franchisees to success is fundamental to our mission as a brand, and we couldn’t be more excited to see what this next chapter holds.”
A Harold’s Chicken franchisee in Illinois has been forced to file for Chapter 11 bankruptcy protection[/caption]
