Boston Market Opening First Location After Filing for Bankruptcy
It's always a heartbreaker when a favorite fast-food chain files for bankruptcy, but it's becoming all too common. The good news is that often times, when a restaurant files for bankruptcy, if it's Chapter 11, it has a second chance to thrive.
According to Investopedia, Chapter 11 is a form of bankruptcy that "reorganizes a struggling company's debts to allow it to stay open and become solvent. A court-appointed trustee oversees the reorganization." They add that with Chapter 11, "a company is restructured and supervised by a court-appointed trustee to reorganize its finances and operations." Also, individuals are allowed to file Chapter 11 bankruptcy, but it's usually filed by businesses.
Now, a beloved fast-food chain that filed for bankruptcy twice appears to be making a comeback. The chain's owner actually tried filing for Chapter 11 bankruptcy protection twice and got turned down both times. "It appears unlikely Boston Market will have the finances to stay afloat or grow," RetailDive stated last year.
But, that's not stopping the chain from opening a new location. Despite Boston Market's problems, the chain has announced that it plans to get back into the restaurant business and will open a new outlet in Buffalo, New York. Boston Market reached a low of just 27 outlets in March 2024, but now, they're hoping to expand and create a thriving business once again.
Also, in a new plan to revive the Boston Market name, owner Jignesh "Jay" Pandya plans to license the concept to others who want to operate a Boston Market location, according to Buffalo Business First. Pandya says there is already a lot of interest about licensing the name and has also gotten hundreds of inquiries about reopening restaurants all over the country.
"He's licensing the concept to other owners who recognize the potential of the brand because the current business is not set up to accept franchisees," the report states. So, don't count Boston Market out just yet.