Fast-food chain Krystal files for Chapter 11 bankruptcy

ATLANTA - The South's oldest fast-food restaurant chain has filed for bankruptcy for the second time in its history.

The Krystal Co. filed a Chapter 11 petition Monday in federal court to reorganize its finances under the protection of the U.S. Bankruptcy Court in Northern Georgia. 

Krystal Hamburger counter in the Hartsfield-Jackson Atlanta International Airport. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)

The company cited debts between $50 and $100 million dollars.

"The actions we are taking are intended to enable Krystal to establish a stronger business for the future and to achieve a restructuring in a fast and efficient manner," the company said in a statement Monday afternoon.

Krystal, known for its square hamburger sliders, currently operates or franchises more than 300 restaurants across nine states, including Georgia, Tennessee, Alabama, Florida, Kentucky, Mississippi, North Carolina, South Carolina, and Arkansas. 

The company first filed for bankruptcy in 1997 due to millions of dollars of employee claims for unpaid overtime. Krystal was acquired from bankruptcy at that time by Port Royal Holdings in a $145 million deal.

The company moved its corporate headquarters from Chattanooga, Tennessee, where it had been based since 1932, to Atlanta in early 2013 after it was acquired by Argonne Capital Group.