An Applebee’s franchisee who previously operated several restaurants in Arkansas, Indiana, Kentucky, and Oklahoma has been forced into Chapter 11 bankruptcy.
It’s safe to say that 2024 has been an absolute whirlwind of a year for the restaurant industry. Several franchisees have filed for bankruptcy in recent months, including Louisiana-based Miracle Restaurant Group LLC, which was forced to close two of their Arby’s locations in the Hoosier State. Additionally, 2024 saw Buca di Beppo file for bankruptcy, which resulted in the closure of one of their Indiana locations. I haven’t even mentioned Red Lobster yet.
Before 2024 hits the rearview mirror, it looks like another franchisee operating a well-known brand will also be entering Chapter 11 bankruptcy. Miami-based Louisiana Apple has found itself in hot water after failing to pay back a loan taken out during the COVID-19 pandemic. The company also allegedly failed to pay royalties to its franchisor—Applebee’s Neighborhood Grill + Bar.
Who is ‘Louisiana Apple’?
According to Restaurant Business, Louisiana Apple is owned by Seenu Kasturi, who is also the CEO of ARC Group—the owner of Dick’s Wings, Tilted Kilt, and a few other restaurant brands. Louisiana Apple previously operated a total of 14 Applebee’s locations spread across Arkansas, Indiana, Kentucky, and Oklahoma. Those restaurants have since been returned to Applebee’s, which terminated its franchise agreement with Louisiana Apple earlier this year.
Louisiana Apple Forced Into Chapter 11 Bankruptcy
Restaurant Business reports that in September 2020, Louisiana Apple acquired a $7.1 million loan from City National Bank of Florida (CNB). Kasturi is also said to have taken out other Paycheck Protection Program (PPP) loans to help navigate the financial stressors during the pandemic. However, it seems the franchisee has struggled to make payments since then. Bankruptcy filings revealed that as of August 15, Louisiana Apple owed CNB more than $8.3 million…