Jack’s Donuts of Indiana Commissary files for Chapter 11 bankruptcy

HENRY COUNTY, Ind. — Jack’s Donuts of Indiana Commissary LLC has officially filed for Chapter 11 bankruptcy.

According to court documents filed Wednesday in the U.S. Bankruptcy Court for the Southern District of Indiana, Jack’s Donuts of Indiana Commissary has over $14 million in total liabilities. The bankruptcy filing also states that the commissary has over $1.4 million in personal property assets.

Multiple creditors are featured in the listing, including Carter Logistics, a transporting company that sued Jack’s Donuts of Indiana Commissary in April. The company claimed they were owed over $700,000 for failing to pay for the delivery of donuts throughout central Indiana.

Chapter 11 bankruptcy permits corporations to propose a plan of reorganization under court supervision in an effort to keep the business alive and pay creditors over an extended period of time.

The company opened a production and distribution center two years ago at 2000 Troy Avenue in New Castle. This resulted in multiple franchisees halting doughnut production at their respective stores, instead purchasing them from The Commissary.

On Thursday, Jack’s Donuts discussed the bankruptcy filing on its Facebook account. It noted that the bankruptcy filing will not affect independently owned franchisees, stating that its stores will “remain open.”

The full statement can be read below:

“You may have seen that Jack’s Donuts has filed for Chapter 11 bankruptcy protection. This is a court-supervised process. We have plans for continued and uninterrupted future operations that will be filed in the case. Our stores remain open, our teams are at work, and our commitment to quality, tradition, and community remains unchanged. The Jack’s franchisor and certain related entities are the subject of the bankruptcy proceedings, and no independently owned franchisee is subject to this action. For more than 60 years, Jack’s Donuts has been about more than donuts — it’s been about people. As we move through this process, our focus is the same: to ensure that the Jack’s experience continues for generations to come. Thank you for your continued loyalty and support.”