An attorney representing the chain that specializes in fried chicken said the firm was unable to meet a $300,000 court-ordered obligation to minority shareholder Thomas Kennefick, The Chicago Tribune reported Wednesday.
The payment, a portion of an $800,000 obligation, was due by the end of the year.
"They couldn't pay the judgment. It would have made the company insolvent," said attorney Rick Golding.
The restaurants will continue to operate while the court sorts through its finances.
Court papers say the company has liabilities between $1 million and $10 million and assets of $100,000 to $500,000.
Copyright 2009 by United Press International.
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