M&M Custard, LLC, operating as Freddy’s Frozen Custard & Steakburgers, has filed for Chapter 11 bankruptcy protection as of November 14 in the U.S. Bankruptcy Court for the District of Kansas. Based in Overland Park, Kansas, this fast-casual restaurant chain has disclosed assets amounting to $5.2 million against liabilities totaling $27.7 million.
The filing suggests that there will be funds for distribution to unsecured creditors, indicating a potential path forward for the company amidst financial restructuring. The case has been assigned the number 25-21650.
The debtor’s structure includes notable stakeholders such as Eric H. Cole and Steven Nordstrom, each holding a 17% equity interest, along with other minority holders making up 49.5% of the company’s equity. The legal counsel for the case is Colin N. Gotham from Evans & Mullinix, P.A.
As the situation develops, Bondoro Insights continues to monitor the case and will provide ongoing coverage, highlighting the steps taken from the initial petition through to the plan confirmation stage. This bankruptcy filing marks a significant event in the fast-casual dining sector, illustrating the challenges many businesses face in today’s economic climate. However, the possibility of restructuring presents an opportunity for Freddy’s to stabilize and enhance its operations in the future.