Pickleball company files for bankruptcy as founder acknowledges business mistake: I own it
Pickleball facility franchisor The Picklr has filed for Chapter 11 bankruptcy protection as the company seeks to reorganize after what its founder acknowledged was a costly business mistake tied to early lease guarantees.The indoor pickleball company filed late Friday in the US Bankruptcy Court for the Northern District of Texas, according to a public statement from the company.The Picklr said an investor group led by one of its franchisees has committed $4.5 million in financing, subject to court approval, while Sports Business Journal reported the group has committed $4.8 million to sponsor the reorganization.Founder and CEO Jorge Barragan told SBJ the bankruptcy filing stems in part from The Picklr agreeing to serve as a guarantor for facility lease payments for some early franchisees.
Barragan said about 40 locations had those arrangements, which became an untenable burden for the parent company.“We signed, unfortunately, too many corporate guarantees that landed on the holding company, and that’s on us.I own it,” Barragan said.
“Utilizing [Chapter 11 bankruptcy] is going to allow all of us to work with these landlords to figure out how to create profitable businesses.… I think this is going to open up doors for a lot of people to renegotiate with the landlords and give people more success moving forward.”The Picklr said its clubs and independently owned franchise locations remain open.“Our clubs are open.
Our members are playing,” the company said in a public statement cited by the International Association of Pickleball and Padel Facilities.“Our franchise partners own and run their clubs, and they’re operating as usual.”The Picklr was founded in 2021 and began franchising locations two years later.
The company has expanded rapidly, with more than 70 domestic locations and facilities in Australia, Canada and Japan, according to SBJ.A balance sheet attached to the company’s petition, dated Aug.31, listed about $915,000 in assets,...