Owner of Five Guys Franchises Seeks to Restructure under Chapter 11 Bankruptcy

by San Antonio Attorney

A franchisee of seven Five Guys Burgers and Fries restaurants that employs 120 people in Broward County, Florida, filed for Chapter 11 bankruptcy as it seeks to reorganize rather than close business.

ASCI Broward is represented by Attorney Marc Goldsand in its bankruptcy case, which was filed as a result of a legal action filed by minority equity holders. ASCI Broward was in obtaining a refinancing through a sale so that it can put up another restaurant in Deerfield Beach. The company says it aims to continue operating and protect ASCI Broward’s value that is why it is filing for bankruptcy.

The company states $2,476,369.78 in secured debt, and also $427,411.49 in unsecured debt for unsettled operating expenses and services. Its assets are worth $5.2 million.

Franfunding Broward, led by Craig Cohen, owns fifty percent of the company and the other fifty percent is shared by seven equity holders with around 7 percent each.

The biggest secured creditor of the company is Hollywood-based Mida Farms, which is owed $2.37 million from a loan that ASCI Broward obtained from Bank Leumi, an Israel-based bank. ASCI Broward also owes $88,196.87 to U.S. Foods and $18,172.91 to the fast food chain Five-Guys. Both are secured creditors.

ASCI Broward listed Jupiter-based DC Green Construction as its biggest unsecured creditor, which it owes $88,073. It also owes $24,100.57 to Coca-Cola  and $19,816.40 to Flatiron Capital.

The company was supposed to expand its business in Hillsboro Square Shopping Center in Deerfield Beach.

There are different legal options for those who are facing business bankruptcy. There is an option that requires the company to sell its assets, while there is also an option to restructure debt as the business continues its operations.

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