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Beloved chicken chain files for bankruptcy despite being named last year's best category in dining
A Harold's Chicken franchisee in Illinois has filed for bankruptcy, putting three suburban Chicago restaurants at risk.
The operator, De'nsite, runs Harold's locations in Homewood, South Holland, and Olympia Fields.
The Chapter 11 filing last month does not affect the parent company, which still operates 47 company-owned restaurants across 10 states.
Harold's Chicken Shack is a Chicago institution, known for its crispy fried chicken slathered in a tangy mild sauce.
Founded in 1950 by Harold Pierce — a Midway, Alabama native who moved to Chicago during the Great Migration — the chain grew from a single South Side storefront into a beloved local brand with loyal fans far beyond Illinois.
The Illinois bankruptcy comes amid a 'chicken renaissance' — US restaurant chicken sales have jumped 9 percent in recent years.
However, smaller operators like Harold's are struggling to compete with national heavyweights.
Bojangles has been aggressively expanding, while Raising Cane's recently knocked KFC out of the nation's top three chicken chains.
Harold's Chicken operates 47 company-owned restaurants in 10 states
De'nsite isn't the first Harold's franchisee to falter. A Nevada-based franchise closed its North Las Vegas location after filing for bankruptcy last year,
Restaurants are feeling the pinch as rent, labor, and supply costs rise.
For example, Sticky's is on the brink of shuttering all its restaurants. The New York-based chain had filed for bankruptcy last year.
Last year, there were 10-plus bankruptcy filings by restaurant chains.
There have been more bankruptcies this year, including Del Taco franchisee Matador Restaurant Group, which operates locations in Georgia and Alabama.
The Del Taco chain is currently owned by Jack in the Box.
Its owners are in the process of closing 150 to 200 underperforming restaurants and seeking a buyer for the Tex-Mex chain.
Another Mexican chain, On The Border Mexican Grill & Cantina, filed for bankruptcy too this year, and is closing 76 locations in 24 states.
Hooters also made headlines for its bankruptcy filing earlier this year while axing restaurants amid $376 million in debt.
Daily Mail has reached out to the operator De'nsite and also to the parent company, and is awaiting response.
