The Integritty Group Files Chapter 11 for Dave's Hot Chicken Operations and Sues Lender
The Integritty Group (TIG), operator of several restaurant brands including Dave’s Hot Chicken, filed for Chapter 11 bankruptcy in Pennsylvania on September 21. The filing includes TIG Reaper and related entities but only covers the group's Dave’s Hot Chicken operations. In its bankruptcy petition, TIG listed between $10 million to $50 million in debts owed to over 100 creditors, with Bank Midwest being one of the largest lenders at nearly $8.75 million. The move comes after a recent lawsuit by Bank Midwest against TIG’s Qdoba affiliates for allegedly defaulting on an $20 million loan. In response, TIG filed a countersuit alleging breach of contract and interference with its efforts to sell the Dave's Hot Chicken business for around $30 million. The group claims that despite being current on payments, Bank Midwest used the appointment of a receiver in another case as grounds to declare default. TIG’s leadership has denied wrongdoing and expressed confidence in legal proceedings. They also highlighted ongoing franchise development plans with brands like PayMore and Ford's Garage.
Topics: bankruptcy chapter-11 counter-suit franchising loan-default