Krystal asks Chapter 11

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Fast-food burger franchiser Krystal Co. filed a Chapter 11 reorganization plan today. The company said it sought bankruptcy protection to resolve a number of disputed claims by former employees that Krystal violated the Fair Labor Standards Act. In addition to Krystal's "worst-case assumption" of $13 million in FLSA claims, the company also carries approximately $49 million in bank, insurance and trade debts. The chain operates more than 300 units, primarily in the South, with 1995 sales of $293 million.

Copyright November 1996, Crain Communications Inc.

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