Jack’s Donuts, a 64-year-old doughnut chain out of Indiana, has filed for Chapter 11 bankruptcy amid a number of lawsuits and legal concerns.
The chain was founded in New Castle, Indiana in 1961. The franchisor of the brand and its commissary filed for bankruptcy on Wednesday, listing between $1 million and $10 million in assets and between $10 million and $50 million in liabilities.
Two other groups connected with the chain, Marcum Industries and KCL Group, also filed for bankruptcy.
The company reportedly operates 24 locations, 14 of which are franchisee-owned, but it appears to have had as many as 30 at one point. Franchisees of the brand remain up and operating, though at least one appears to have rebranded their store as “Boomtown Donuts.”
Jack’s Donuts no longer appears to have a usable website. But on Facebook, the company said that no franchisee is subject to the bankruptcy filing and that the company has plans “for continued and uninterrupted future operations.”
“For more than 60 years, Jack’s Donuts has been about more than donuts,” the post says. “It’s been about people. As we move through this process, our focus is the same: To ensure that the Jack’s experience continues for generations to come.”
Details behind the filing are vague. But there are 11 lawsuits against the company listed in the filing and multiple judgments against the company totaling more than $1 million. Many of the lawsuits appear to be over unpaid bills, including $783,157 to an Indiana trucking company.
There are a half-dozen liens against the company’s assets, according to court filings.
In May, the Indiana Secretary of State cited Jack’s Donuts CEO Jack Marcum for violating state securities laws after the company apparently sold unregistered securities to two investors in 2024.
Jack’s in 2023 shifted away from in-store doughnut production to a centralized commissary, according to the Indianapolis Business Journal.
Several small restaurant companies have filed for bankruptcy this year amid a difficult overall operating environment.
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