Popular fast food chicken joint fears restaurant closures after operator files for bankruptcy
A beloved fried chicken restaurant chain that traces its roots back to the 1950s faces a bankruptcy filing.
A franchisee who runs Harold's Chicken locations in Nevada says it cannot pay its debts.
The Chapter 11 filing on October 4 puts the future of the two restaurants in Las Vegas and Henderson in doubt.
The franchisee's filings show that it owes $40,000 but also that it has no assets, and would have no funds to pay its debts,
Founded in Chicago by Harold Pierce in 1950, Harold's Chicken emerged from an African-American neighborhood at a time when larger chains often overlooked such communities.
A franchisee who runs two Harold's Chicken locations has filed for bankruptcy
Pierce’s restaurant became a symbol of Black entrepreneurship and one of the few successful Black-owned fast-food chains in the U.S.
Today, Harold's Chicken boasts 46 locations across eight states, including Arizona, California, Georgia, Illinois, Indiana, Missouri, Nevada, and Texas.
The problems in Nevada are the latest for the chain.
A Chicago location on East 47th Street was closed by the Illinois Department of Revenue in June 2024 for undisclosed tax issues, and another spot on 87th Street permanently closed in July 2020 after the landlord raised rent by 40 percent.
The situation for the Harold's Chicken locations highlights the broader difficulties facing the restaurant industry.
Big name chains like Applebee's, TGI Fridays and Boston Market have have all recently shuttered restaurants.
Red Lobster filed for bankruptcy in May and closed almost 100 restaurants. It has since emerged from bankruptcy.
BurgerFi is the latest for file for bankruptcy in September - sparking sparks fears of mass closures of its 162 locations.
Hooters - known for its scantily-clad waitresses - in September announced urgent talks with lenders amid $300 million of debts, Bloomberg reported.
Earlier this year, Hooters closed about 40 'underperforming' restaurants at locations om Florida, Kentucky, Rhode Island, Texas and Virginia in a bid to cut costs.
Chains have been worst hit in California where the minimum wage for fast food restaurants jumped to $20-an-hour from April 1.
Hooters has closed around 40 restaurants this year
In early June, Mexican chain Rubio's shut 48 locations in the state and also filed for bankruptcy.
Across America, mom-and-pop operations have also been shutting.
For example, Fargo's Pit BBQ in Texas closed after more than two decades of serving brisket, ribs and other barbecue classics.
