Jack’s Donuts of Indiana Commissary files for Chapter 11 bankruptcy
HENRY COUNTY— Jack’s Donuts of Indiana Commissary LLC has filed for Chapter 11 bankruptcy, according to documents filed October 29 in the U.S. Bankruptcy Court for the Southern District of Indiana.
WRTV Investigates has been telling you about civil lawsuits and judgments against Jack’s Donuts CEO Lee Marcum and businesses connected to him.
In October 2023, Jack’s Donuts opened a production and distribution center in New Castle called the commissary.
A website for Jack’s Donuts is no longer working, but WRTV Investigates reported earlier this year that the company had 24 locations and 14 franchisees.
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Chapter 11 is a type of bankruptcy that allows a business to reorganize its finances under court supervision, rather than liquidating assets entirely.
“Typically, there will be an effort to make the business more effective,” said Nicholas Georgakopoulos, a business law professor at IU McKinney Law School in Indianapolis. “So there will also be a reorganization of the business. Reorganization should be thought of mostly as a reorganization of ownership and debt. It might be that only the obligations and the ownership change.”
WRTV Investigates has reached out to Marcum and his bankruptcy attorney for comment on the filing and what this means for the company. We are still waiting to hear back.
The bankruptcy filing says Jack’s Donuts of Indiana Commissary has more than 100 creditors and $14.2 million in liabilities.
It says Jack’s Donuts of Indiana Commissary LLC has more than $1.4 million in total personal property assets.
The creditors include businesses that have existing judgments, including trucking company Carter Logistics which filed a lawsuit alleging they were not paid for donut deliveries.
The filing also listed a $3.5 million judgment in favor of Old National Bank.
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