Pickleball franchisor The Picklr files for Chapter 11 bankruptcy

Summarised from 2 outlets · Updated 13 Oct, 23:57 · Archive

Indoor pickleball company The Picklr has filed for Chapter 11 bankruptcy after taking on costly lease guarantees for franchisees.

The Picklr, an indoor pickleball franchisor, filed for Chapter 11 bankruptcy protection late Friday in the US Bankruptcy Court for the Northern District of Texas. The company said it seeks to reorganise while keeping its locations operational.

Founder and CEO Jorge Barragan said the bankruptcy stems largely from The Picklr agreeing to serve as guarantor for facility lease payments for about 40 early franchisees. "We signed, unfortunately, too many corporate guarantees that landed on the holding company, and that's on us," Barragan told Sports Business Journal. "I own it."

Barragan said the Chapter 11 process will allow the company to renegotiate with landlords and help create more profitable businesses going forward. The Picklr said in a public statement that its clubs remain open and members continue playing, with franchise partners operating as usual.

An investor group led by one of its franchisees has committed financing for the reorganisation. The New York Post reported this as $4.5 million, while Sports Business Journal reported $4.8 million, subject to court approval. The Picklr was founded in 2021 and began franchising two years later, expanding to more than 70 domestic locations and facilities in Australia, Canada and Japan.

How it is being reported

• Pickleball franchisor files for bankruptcy as CEO admits ‘that’s on us’ for business mistakeAll clubs and franchise locations remain fully operational while the parent company restructures its debts in bankruptcy courtIndependent World · 13 Oct, 23:25
• Pickleball company files for bankruptcy as founder acknowledges business mistake: ‘I own it’Founder Jorge Barragan said about 40 locations had corporate guarantee arrangements that became untenable for the companyNew York Post · 13 Oct, 08:35

In this story: The Picklr · Jorge Barragan · Texas · Australia · Canada · Japan

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem