The franchisor of Jack’s Donuts has filed for bankruptcy.
Customers can still get their doughnut fixes at its shops despite the Chapter 11 bankruptcy protection, though, the 64-year-old Indiana-based company said on an Oct. 30 social media post.
“We have plans for continued and uninterrupted future operations that will be filed in the case. Our stores remain open, our teams are at work, and our commitment to quality, tradition, and community remains unchanged,” the company posted on Oct. 30.
Jack’s Donuts of Indiana Commissary LLC filed on Oct. 29 in U.S. Bankruptcy Court for the Southern District of Indiana. The company said no independently-owned operations are affected.
Jack’s Donuts, founded in New Castle, Indiana, in 1961, has about 24 locations, 14 of them franchisee-owned.
“As we move through this process, our focus is the same: to ensure that the Jack’s experience continues for generations to come,” the company said in the post.
The filing comes as the company faces 11 lawsuits and multiple judgments against it totaling more than $1 million, according to Restaurant News. Most of the activity is over unpaid bills.
The franchisor of the brand and its commissary filed for bankruptcy on Oct. 29, listing between $1 million and $10 million in assets and between $10 million and $50 million in liabilities, the publication reported.
Two other groups connected with the chain, Marcum Industries and KCL Group, also filed for bankruptcy.
In May, the Indiana Secretary of State cited Jack’s Donuts CEO Jack Marcum for violating state securities laws after the company apparently sold unregistered securities to two investors in 2024.
This article originally appeared on Indianapolis Star: Jack’s Donuts files for bankruptcy. What to know. Will the shops close?
Reporting by Cheryl V. Jackson, Indianapolis Star / Indianapolis Star
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