New York Fortress Investment Group: The Bankruptcy of a Fast Food Icon
Hey fast-food icon, the Krystal burgers best food chain, recently sold itself through a paltry sum of $48 million.
The company was acquired by fortress investment group. They are affiliated with the senior leadership of the lenders that service Krystals financing.
The agreement was approved last Wednesday by a federal bankruptcy court who had convened on the matter.
New York Fortress Investment Group: The Krystal Situation
Fortress investment group paid $27 million in credit as part of their bid. They also assumed the liabilities of the company, worth 21.5 million, DB KRST Investors LLC.
This marked the end to a long history for the fast-food chain restaurant, which started in Chattanooga, Tennessee, nearly 90 years ago in 1932. They initially filed for bankruptcy back in January. Before filing, they had already closed over 44 locations in only the last year.
In total, there are around 300 units between all of the southeastern states that are owned by the chain. The reason that was cited during the filing for the company’s failure was from the competition that was a result of online delivery platforms.
They also said they had difficulty finding and retaining decent employees.
New York Fortress Investment Group: What Does It All Mean?
The investment company is now planning its future moves for the company. As of now, the leadership of the investment firm believes that there is still a lot of value in the brand.
They hope to help re-print it and then re-market it. Eventually, they would like to resell the company for a profit. Since January, at least ten qualified parties had expressed interest in purchasing the bankrupt company. The success of the deal that was brokered by fortress investment is a testament to the investment firm’s leadership.
They were able to steer their vision to the future to create a world that they believe will be better for the company. A new vision and new life in an old brand are somewhat of a fresh idea.
