A rather recent arrival to Stony Issue Manner Park has ducked into bankruptcy court as it seeks to resolve a dispute though keeping its doorways open up.
The area franchise of Eggspectation, a Maryland-centered breakfast chain, filed for Chapter 11 personal bankruptcy safety this week, a very little far more than a yr after it opened at the South Richmond shopping mall.
The filing was spurred by a dispute amongst the regional franchisee and Eggspectation’s franchisor corporation, although it is unclear exactly where the two events don’t see eye to eye. The neighborhood franchise entity is MKS Team LLC.
“We have specified disagreements with our franchisor but we hope to solve them in a business enterprise-like way in the near upcoming,” John Barrett of Virginia Beach front-based Allegiant Regulation, who’s symbolizing MKS, mentioned in an electronic mail Thursday.
The bankruptcy submitting lists a disputed personal debt owed to the franchisor of $65,000.
Chapter 11 lets a corporation to continue being in small business and retain creditors at bay though reorganizing its finances.
Barrett mentioned the Stony Stage Eggspectation place continues to operate as normal as it seeks to reorganize.
“We are open up for business enterprise ideal now and will continue on to function into the long term,” he said.
Barrett stated the strategy is to try to settle the issue without having the want for a court selection.
Eggspectation’s company office environment did not respond to a ask for for comment.
The Chapter 11 submitting lists MKS as getting an approximated $1 million to $10 million in belongings and an believed $100,000 to $500,000 in liabilities. It is managed by Vishal Patel, who is also its CEO.
The Eggspectation chain launched in Canada in 1993. It has extra than a dozen areas in Canada as effectively as a Middle East existence. Most of its seven U.S. locations are in the D.C. region, with an eighth U.S. site to open in Maryland, for every the organization web page.
The Stony Level location opened about a year ago. The shopping mall was a short while ago stated for sale.