Fried-chicken chain shutters dozens of locations, denies bankruptcy

A major fried-chicken chain closed dozens of outlets across multiple U.S. states this week. The company described the closures as targeted actions to stabilize the business and noted they affected both company-owned and franchised locations. The review followed declining same-store sales at the affected sites, rising operating costs and an assessment of the chain's real estate footprint.

The company announced the closures in a brief statement and added it will concentrate resources on stronger markets. It said it will continue to operate hundreds of locations nationwide and is in discussions with affected franchisees, landlords and vendors to limit disruption.

In a statement, the company wrote, “We are not bankrupt. These closures are part of a restructuring plan to concentrate resources on our most successful markets and support our franchise partners where demand is strongest.”

Franchisees and employees reported abrupt shutdowns at some locations, with workers losing shifts and several stores posting brief closure notices. One franchisee who asked not to be named recounted receiving a call that a lease would not be renewed, noting there was little warning. The company offered transitional support to impacted staff and franchisees but did not provide details on severance or financial assistance.

The company cited higher food costs, rising labor expenses and stronger competition from rival chains and delivery services as pressures on the business. It reported maintaining access to credit lines and continuing to invest in menu updates and digital ordering.

Customers in affected neighborhoods found locked doors and reduced hours at nearby branches. The chain encouraged patrons to check its website and mobile app for current store hours and to use digital ordering for remaining locations. It plans a market-by-market assessment to determine whether closed sites might reopen under new franchise agreements or a different format.

The company did not disclose whether it has engaged restructuring advisers or taken formal steps such as filing for bankruptcy protection. It stated it continues to meet obligations to creditors and suppliers and expects to provide a more detailed update with its next quarterly results. Investors and franchisees will watch for any indication of further closures, asset sales or changes to franchising strategy.