A relatively modern arrival to Stony Stage Style Park has ducked into individual bankruptcy court docket as it seeks to take care of a dispute while trying to keep its doors open.
The local franchise of Eggspectation, a Maryland-based breakfast chain, filed for Chapter 11 individual bankruptcy safety this 7 days, a tiny much more than a yr after it opened at the south Richmond shopping mall.
The filing was spurred by a dispute amongst the area franchisee and Eggspectation’s franchisor company, while it’s unclear specifically where by the two parties really do not see eye to eye. The neighborhood franchise entity is MKS Group LLC.
“We have selected disagreements with our franchisor but we hope to take care of them in a enterprise-like manner in the near foreseeable future,” John Barrett of Virginia Seashore-primarily based Allegiant Legislation, who’s representing MKS, explained in an electronic mail Thursday.
The bankruptcy submitting lists a disputed financial debt owed to the franchisor of $65,000.
Chapter 11 will allow a enterprise to remain in company and continue to keep creditors at bay though reorganizing its funds.
Barrett stated the Stony Place Eggspectation location proceeds to run as common as it seeks to reorganize.
“We are open up for business correct now and will proceed to operate into the future,” he mentioned.
Barrett stated the plan is to check out to settle the make any difference with no the need to have for a courtroom selection.
Eggspectation’s company place of work didn’t respond to a request for remark.
The Chapter 11 filing lists MKS as obtaining an approximated $1 million to $10 million in assets and an believed $100,000 to $500,000 in liabilities. It is managed by Vishal Patel, who is also its CEO.
The Eggspectation chain introduced in Canada in 1993. It has far more than a dozen spots in Canada as nicely as a Middle East existence. Most of its 7 U.S. places are in the D.C. place, with an eighth U.S. site to open in Maryland, for every the corporation site.
The Stony Level place opened about a 12 months in the past. The shopping mall was not long ago outlined for sale.