The first meeting of creditors is scheduled for May 23. It employs 630 workers. The owners offer no explanation for the bankruptcy filing. A summary of Pride's financial status has yet to be submitted to the court, as a motion granted this week extended that deadline to May 18. Richard Papiernik, financial editor for Nation's Restaurant News, says restaurant franchisees often are unable to repay loans received from lenders that specialize in chain store financing.
Some lenders give money based on potential sales.
Pride's apparent financial struggles may be part of a larger problem. According to a recent article in USA Today, Burger King franchisees want the company to separate from its parent company, Diageo, the British producer of Guinness beer, Johnnie Walker and Smirnoff. In the article, newly appointed Burger King CEO John Dasburg said he plans to repair relationships with franchisees and work toward a separation from Diageo. Whitmore and Patrick say they are pleased with Dasburg's new leadership. Earliest info on new businesses, homeowners Insurance Center Covering the needs of small business owners Legal Center Hundreds of business legal tools Office Products Special deals on equipment, supplies.