TAMPA Fla. A 15-unit Church’s Chicken franchisee has filed for Chapter 11 bankruptcy protection and closed three unprofitable stores, according to court documents.
The franchisee, Tampa-based Quick Service Foods, said in the filings that a 10-percent decline in 2007 sales, to $11 million, and rising fuel costs were the underlying factors.
Ford Reihani, owner of the 15 units in the Orlando and Tampa areas, is also reportedly seeking to close other unprofitable stores, but contends in court records that franchisor Cajun Operating Co., won't allow it to do so. The petition also states that its restaurants are located in economically depressed but redeveloping areas. Quick Service owns stores in Hillsborough, Pinellas, Polk and Orange Counties.
Documents filed on Feb. 29 showed the company claimed assets of $10 million to $50 million and liabilities of $10 million or less, and that it owes GE Capital Franchise Finance Corp. approximately $5.1 million.
Reihani, president of Quick Service, and his wife, Diana Juarez Reihani, the company’s secretary, reportedly want the court to allow them to continue to collect their weekly salaries of $2,884 and $1,923, respectively.
Church's Chicken has 1,600 units in 19 countries.