Popular fast food chicken joint fears restaurant closures after operator files for bankruptcy

A beloved fried chickenhearted edifice concatenation that traces its roots backmost to the 1950s faces a bankruptcy filing.

A franchisee who runs Harold's Chicken locations successful Nevada says it cannot wage its debts. 

The Chapter 11 filing connected October 4 puts the aboriginal of the 2 restaurants successful Las Vegas and Henderson successful doubt.

The franchisee's filings amusement that it owes $40,000 but besides that it has not assets, and that it would person nary funds to wage its debts, 

Founded successful Chicago by Harold Pierce successful 1950, Harold's Chicken emerged from an African-American vicinity astatine a clip erstwhile larger chains often overlooked specified communities.

Pierce’s edifice became a awesome of Black entrepreneurship and 1 of the fewer palmy Black-owned fast-food chains successful the U.S. 

Today, Harold's Chicken boasts 46 locations crossed 8 states, including Arizona, California, Georgia, Illinois, Indiana, Missouri, Nevada, and Texas.

The problems successful Nevada are the latest for the chain. 

A Chicago determination connected East 47th Street was closed by the Illinois Department of Revenue successful June 2024 for undisclosed taxation issues, and different spot connected 87th Street permanently closed successful July 2020 aft the landlord raised rent by 40 percent.

The concern for the Harold's Chicken locations highlights the broader difficulties facing the edifice industry. 

Big sanction chains similar Applebee's, TGI Fridays and Boston Market person have each precocious shuttered restaurants.

Red Lobster filed for bankruptcy successful May and shuttered astir 100 restaurants.  It has present emerged from bankruptcy. 

BurgerFi is the latest for record for bankruptcy in September - sparking sparks fears of wide closures of its 162 locations. 

Also successful September, it emerged that bosses astatine Hooters - known for its scantily-clad waitresses - are successful urgent talks with lenders amid $300 cardinal of debts, Bloomberg reported.

Earlier this year, Hooters shuttered astir 40 'underperforming' restaurants including locations Florida, Kentucky, Rhode Island, Texas and Virginia as it bid to chopped costs. 

Chains person been worst deed successful California wherever the minimum wage for accelerated nutrient restaurants jumped to $20-an-hour from April 1. 

In aboriginal June, Mexican concatenation Rubio's unopen 48 locations in the authorities and besides filed for bankruptcy. 

Across America, mom-and-pop operations person besides been shutting.

For example, Fargo's Pit BBQ successful Texas closed aft much than 2 decades of serving brisket, ribs and other barbecue classics.