Confirmed three more closures of Crumbl locations, which brings my count of shutdowns to at least 60 so far this year. One of those three is in Louisville, and comes along with a Chapter 7 bankruptcy filing, which gives us a partial picture of an operator's finances.
The operators in this case walked away from a location that was opened in 2024 and had 2.5 years remaining on its lease. According to court documents, it has $352,780 in liabilities compared with just $10,000 in assets, all in the form of signs and cookie-making equipment. There's no other assets listed, including inventory, receivables, deposits, etc.
The equipment is the collateral for a $269,109, secured loan with Republic Bank. So the collateral is worth just 3.7 cents for every $1 of secured debt.
The operator also said that it lost $17,000 operating the business this year. And it owes $69,000 to the landlord for those 2.5 years remaining on the lease.
At one point, this was one of the top 25% of Crumbl locations and the operators were telling
@NRNonline that they wanted a third location.
You can check out the original NRN article with the operators here:
nrn.com/restaurant-franchisi…
And here's our look at Crumbl:
restaurantbusinessonline.com…