Checkers (the drive-through chain) goes through changes

I learned incidentally last week, while working my day job, that the fast-food chain Checkers did a debt restructuring quite recently. They gave up a lot of equity to some of their creditors in return for a big write-down on the debts. In other words, they and their creditors worked out much the same deal for themselves that a bankruptcy court might have, with a lot more time and expense and higgling, had they gone the chapter 11 route.

New owners are in control now at the board level, but they seem content to leave the same management group in charge.

To reformulate that: management made a nice deal for itself, saving its position in the face of a debt burden that looked ruinous.

Not the most exciting news ever, but one always likes to hear of the financial troubles of corporations that are household names.

Wait .. Checkers isn't a household name in your household? Well, it is mostly a southern thing. Checkers is very big in Georgia, Florida, and east Texas. Under another name (Rally's) it is also big in the midwest, especially Michigan, Ohio, and Indiana.

Anyway: WHY were they in such trouble that such a seemingly-miraculous bit of bargaining was necessary? Ah, that is a long story. They are mostly drive-through oriented. The fast food drive-through market is extremely competitive, and fan loyalty can be very fickle. Furthermore, in the post-Covid environment people have learned that one doesn't really need to drive anywhere to get burgers and fries. Call a number or use an app and the food will be at one's door in minutes. Checkers has been a little slow on the uptake with that development and that has hurt it.

Now they have bought some time to rejigger their approach.

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