Popular fast-food chain Krystal, known for serving burgers on steamed, square buns, has filed for chapter 11 bankruptcy protection.
The chain opened its first store in Chattanooga, Tenn., in 1932, and now operates about 300 stores across the South, employing about 7,500 people.
“The actions we are taking are intended to enable Krystal to establish a stronger business for the future and to achieve a restructuring in a fast and efficient manner,” the company said in a statement.
Krystal Company says its restaurants will stay open during the bankruptcy process.
The filing cites shifting consumer tastes and a tight labor market among the reasons for filing bankruptcy. Fast-food restaurants have an unusually high turnover rate of up to 200 percent, and Krystal’s statement says the labor market makes it difficult to staff its restaurants.
The company has debts of between $50 million and $100 million, according to the filing.