Popular donut chain Jack’s Donuts has filed for bankruptcy. According to Fox 59, the filing comes after multiple creditors brought complaints against CEO Lee Marcum and the company in recent years, saying they are owed millions for the services they provided.
According to WRTV, at least six lawsuits have been filed against the company. One of the lawsuits was filed by Old National Bank in February, accusing Marcum and the company of defaulting on business loans. An Ohio business named Specialty Fitters, which provides piping services, also filed a lawsuit for breach of contract.
Carter Logistics, a transportation company that brought a lawsuit against Jack’s Donuts, claimed that the donut chain owes more than $700,000. Per Fox 59, Carter Logistics filed its lawsuit in April, stating that Jack’s Donuts didn’t pay for the delivery services provided between May 2024 and January 2025.
“Despite repeated demands for payment, Defendant has failed and refused to pay Plaintiff the sum due,” the suit stated, per Fox 59.
Additionally, several investment funding firms claim that Jack’s Donuts owes them money. Now filing for Chapter 11 bankruptcy, Jack’s Donuts hopes to pay its debt to creditors over time and keep its business alive.
Jack’s Donuts made a major change in 2023
In 2023, the Indiana-based donut chain opened a production and distribution center known as The Commissary, causing multiple franchisees to stop producing at their local stores. Instead, the stores started purchasing products from The Commissary.
Per The Street, the company’s franchisees started selling their baking equipment and laying off their bakers after the opening of the production center.
Franchise owner Angi O’Connell Bone told WRTV that the change negatively affected the business.
“The donuts weren’t great,” Bone told WRTV. “We lost customers when we changed over, and they compared us to a gas station donut. That was heartbreaking.”
What did Jack’s Donuts say after filing for Chapter 11 bankruptcy?
In a statement released after Jack’s Donuts filed for bankruptcy, the company said the filing will not affect the franchisees: “We have plans for continued and uninterrupted future operations that will be filed in the case,” the company said in part on Facebook. “Our stores remain open, our teams are at work, and our commitment to quality, tradition, and community remains unchanged.”
Jack’s Donuts has been in business for over 60 years.
“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,” the company said in the same Facebook statement.