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Owner of 70 local Jack In The Box restaurants files bankruptcy

A court filing said the companies filed bankruptcy to "implement a restructuring agreement" negotiated with San Diego-based Jack In The Box
Credit: SLBJ
Jack, of Jack-in-the-Box. A local franchisee has filed Chapter 11 bankruptcy amid increased competition and pressures from the pandemic.

ST. LOUIS — The owners of 70 Jack In The Box restaurants in Missouri and Illinois have filed Chapter 11 bankruptcy.

The limited liability companies, Earth City-based Missouri Jack, Illinois Jack and Conquest Foods, made the filings Tuesday in bankruptcy court in St. Louis. Missouri Jack listed assets and liabilities of $10 million to $50 million, Illinois Jack and Conquest listed assets of $1 million to $10 million and liabilities of $10 million to $50 million. The companies said in court filings that Navid Sharafatian of Victorville, California, is manager of TNH Partners LLC, their manager.

An attorney for the franchisees, David Sosne of Ladue-based Summers Compton Wells LLC, didn't immediately respond to a request for comment. They're also represented by Leech Tishman Fuscaldo & Lampl Inc.

A court filing made by Sosne said the companies filed bankruptcy to "implement a restructuring agreement" negotiated with San Diego-based Jack In The Box (NASDAQ: JACK). It said the agreement was negotiated "to reorganize (the franchisees') financial affairs." Jack In The Box didn't immediately respond to a request for comment.

Missouri Jack owns and operates 57 Jack in the Box restaurants throughout the state, employing 1,338 full-time workers, the document said. Illinois Jack has 13 restaurants in that state, with 332 full-time employees. 

Conquest is the sole member of both companies, and a co-franchisee of the restaurants, the documents said. Conquest is also a defendant in a lawsuit initiated by a lender, City National Bank of Los Angeles. 

Click here for the full story from the St. Louis Business Journal.