US EditionPublished • loading... • Updated
Chapter 11 bankruptcy, season sales, franchisee trouble — Here's why multiple ice cream brands in US are shutting shops
M&M Custard reported $5.2 million in assets and $27.7 million in liabilities while filing for Chapter 11 to restructure debts and pay unsecured creditors.
- M&M Custard LLC filed for Chapter 11 protection on Friday in the Bankruptcy Court for the District of Kansas, covering itself and 31 affiliate franchise locations.
- This year, broader economic strain on lower- and middle-income consumers has hit retail and restaurants, with CEO Chris Kempczinski warning last week that quick-service restaurant traffic from lower-income customers fell nearly double digits.
- The court filing lists $5.2 million in assets, $27.7 million in liabilities, and between 100 and 199 creditors, with funds available for unsecured creditors and several store closures planned.
- This filing joins a wave this year of chains seeking bankruptcy protection, with industry leaders warning of continued strain on franchisees and quick-service demand.
- Franchisee-Only filings underscore financial distress as the case involves franchisees, not the parent company, with operators facing unemployment, student loan repayment, and slower real wage growth.
Insights by Ground AI
8 Articles
8 Articles
Ch. 11 Scoop: Freddy's Franchisee Moves to Slash £18M Debt in Ice Cream Chain Crunch – And No, It's Not Dairy Queen
A major Freddy's Frozen Custard franchisee has filed for Chapter 11 to restructure £18 million in debt amid a wider financial crunch hitting ice-cream chains in 2025.
·United States
Read Full Article
Chapter 11 bankruptcy, season sales, franchisee trouble — Here's why multiple ice cream brands in US are shutting shops
A number of popular ice cream brands in the US have filed for Chapter 11 bankruptcy and are shutting shops at multiple locations, including Dairy Queen, Freddy's Frozen Custard, Culver's, and Rita's Italian Ice. Here's all you need to know…
·New Delhi, India
Read Full Article
Coverage Details
Total News Sources8
Leaning Left1Leaning Right0Center5Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
Factuality
To view factuality data please Upgrade to Premium
