The Atlanta-based fast food chain has been on the verge of losing its bid for the Atlanta-area Chick-Filter restaurant franchise and is looking to take advantage of a favorable tax environment to win the lucrative franchise, according to multiple sources.
Chick-Fila is planning to file for Chapter 11 bankruptcy protection, according the Atlanta Journal-Constitution, in order to save its business.
Chick-Fil’s bankruptcy filing could take the company from $6.6 billion in revenue in 2016 to $6 billion or more by 2021, according Chick- Fil-A spokeswoman Amy Cramer.
The company has been in a long-term bankruptcy, which is when a company is forced to shut down and liquidate its operations.
However, the bankruptcy filing is not likely to be finalized until later this month, according Cramer, who said Chick- Fila is still considering several options for its future.
Champ-fil was formed in 1976 by three Atlanta businessmen and their sons to offer customers the ultimate meal: A plate of chicken breast with sauce, lettuce, tomatoes, onions, lettuce dressing and cheddar cheese.
The business expanded quickly and has expanded into over 400 locations nationwide.
Chop-Saw’s bid for a franchise in the Atlanta metro area has been delayed.
It’s expected to be filed for bankruptcy protection in the first quarter of 2019.
A representative for Chick Fil- A did not immediately respond to a request for comment.