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Jonathan Shenson, Partner in the Bankruptcy, Reorganization & Capital Recovery Groups, was quoted in an article by TheStreet discussing a Dave’s Hot Chicken franchisee’s Chapter 11 bankruptcy filing and the financial and restructuring considerations facing multi-unit franchise operators.

Excerpt:

“A hot brand and a healthy franchisee aren’t the same thing,” Shenson told TheStreet in an email message. “When a multi-unit operator’s loans are tied together and one defaults, Chapter 11 is often the only way to stop the lender, reject leases on underperforming locations, keep the good ones open, and restructure or sell the rest while keeping the franchisor on board.”