Fast Food Chain That Once Had 1,200 Restaurants About To Close Remaining 27

Plenty of restaurant chains have closed locations or filed for bankruptcy over financial problems, like Red Lobster , Pizza Hut , Buca di Beppo , TGI Fridays , Popeyes , Tijuana Flats , Cracker Barrel and Applebee's , but few have seen as big a drop in profits as Boston Market. At its peak, the popular fast food chain boasted 1,200 restaurants but now, it's down to just 27, and all of their days are numbered.

Four years ago, Engage Brands, LLC, which is owned by Jignesh Pandya , acquired Boston Market, and it has struggled. In December, Pandya declared bankruptcy personally , claiming liabilities in the range of $10-50 million dollars, in part due to judgements against him, including one against another company he owns, Yum Brands, which is facing an $11 million penalty over legal issues with Pizza Hut locations.

Typically, this wouldn't affect another company he owns like Engage Brands, but unfortunately, that company is also embroiled in some serious lawsuits, including one that ended in a court ordering them to pay $15 million to one of their vendors, US Foods. There are hundreds of others who have sued Boston Market and Engage Brands over money owed as well. Another judgement demanded that the brand's bank hand over all money in its accounts to US Foods, but because so many other companies have made claims on the funds, the bank can't do it, according to Restaurant Business .

Pandya has tried to file for Chapter 11 bankruptcy for Engage, but a court rejected his petitions and in April, barred him from filing for it again until October. Meanwhile, their headquarters has been seized over unpaid taxes. There may not even be 27 restaurants left but the store locator on the chain's page is out of date, listing locations that have permanently closed. In fact, the only reason the remaining Boston Markets that are still open can even continue is because of the complex court issues surrounding the company.

To say things look bleak for Boston Market is an understatement, and assuming all forms are properly filed in October, it's expected that with this level of debt, a Chapter 7 bankruptcy is coming, which would see all remaining stores shutter immediately.