Jack’s Donuts Of Indiana Commissary Files For Chapter 11 Bankr...

Jack’s Donuts Of Indiana Commissary Files For Chapter 11 Bankruptcy Days Before National Donut Day

Jack’s Donuts of Indiana Commissary LLC has filed for Chapter 11 bankruptcy, just days before National Donut Day.

The filing, submitted to the U.S. Bankruptcy Court for the Southern District of Indiana, reveals over $14 million in liabilities and $1.4 million in personal property assets.

This move comes amidst ongoing financial challenges, including lawsuits and judgments against the company and its CEO, Lee Marcum.

The commissary, which opened in New Castle in 2023, centralized production and distribution for Jack’s Donuts franchisees.

However, financial struggles have plagued the company, including a lawsuit from Carter Logistics over $700,000 in unpaid delivery invoices.

Additionally, a $3.5 million judgment in favor of Old National Bank further highlights the company’s financial strain.

Despite the bankruptcy filing, Jack’s Donuts emphasized that independently owned franchise locations remain unaffected and will continue operations.

In a statement, the company reassured customers of its commitment to quality and tradition, stating, “Our stores remain open, our teams are at work, and our commitment to quality, tradition, and community remains unchanged.”

The filing also follows a cease-and-desist order issued earlier this year by the Indiana Secretary of State, alleging violations of securities laws by Marcum and his businesses.

This order has added to the scrutiny surrounding the company’s financial practices.

While the Chapter 11 filing allows for reorganization under court supervision, the future of Jack’s Donuts Commissary remains uncertain.

Franchisees have distanced themselves from the commissary’s financial troubles, with some clarifying that their operations are independent and unaffected.

As Jack’s Donuts navigates this challenging period, the company’s focus remains on ensuring the continuity of its beloved brand, which has been a staple in Indiana for over 60 years.