Winstead’s files plan to pay off debt, continue operating after bankruptcy

Business

KANSAS CITY, Mo. — A longstanding Kansas City burger chain has crafted a Chapter 11 bankruptcy plan to continue operations and pay off debts.

Winstead’s, founded in 1943, filed for bankruptcy in February and closed its Leawood location at 4971 W. 135th St. during the Covid-19 pandemic to improve profitability. In 2018, it had six locations, but it’s down to two: 101 Emanuel Cleaver II Blvd. in Kansas City and 10711 Roe Ave. in Overland Park.

Nabil and Peggy Haddad own a majority of Winstead’s at 96%, David Haddad owns 3%, and Samia Haddad owns 1%. Moving forward, the group will retain their ownership interest but won’t receive monetary distributions through the Chapter 11 plan, according to court documents.

Winstead’s owes $1.3 million in unsecured claims, plus $856,400 in priority and secured claims. It also owes $274,176 in priority tax claims and $16,841 in administrative expenses tied to the Chapter 11 filing.

Winstead’s has created a payment plan that starts in 2021 and continues through March 1, 2028. Winstead’s will use cash flow from operations to make payments. The plan awaits court approval, and objections must be filed by Dec. 14.

Read more on Winstead’s plan forward in the Kansas City Business Journal.

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