A relatively recent arrival to Stony Point Fashion Park has ducked into bankruptcy court as it seeks to resolve a dispute while keeping its doors open.
The local franchise of Eggspectation, a Maryland-based breakfast chain, filed for Chapter 11 bankruptcy protection this week, a little more than a year after it opened at the South Richmond mall.
The filing was spurred by a dispute between the local franchisee and Eggspectation’s franchisor company, though it’s unclear exactly where the two parties don’t see eye to eye. The local franchise entity is MKS Group LLC.
“We have certain disagreements with our franchisor but we hope to resolve them in a business-like manner in the near future,” John Barrett of Virginia Beach-based Allegiant Law, who’s representing MKS, said in an email Thursday.
The bankruptcy filing lists a disputed debt owed to the franchisor of $65,000.
Chapter 11 allows a company to remain in business and keep creditors at bay while reorganizing its finances.
Barrett said the Stony Point Eggspectation location continues to operate as usual as it seeks to reorganize.
“We are open for business right now and will continue to operate into the future,” he said.
Barrett said the plan is to try to settle the matter without the need for a court decision.
Eggspectation’s corporate office didn’t respond to a request for comment.
The Chapter 11 filing lists MKS as having an estimated $1 million to $10 million in assets and an estimated $100,000 to $500,000 in liabilities. It is managed by Vishal Patel, who is also its CEO.
The Eggspectation chain launched in Canada in 1993. It has more than a dozen locations in Canada as well as a Middle East presence. Most of its seven U.S. locations are in the D.C. area, with an eighth U.S. location to open in Maryland, per the company website.