(CNN) — Krystal, a popular fast-food chain in the southeastern United States, has filed for bankruptcy.
In its filing, Krystal cited several contributing factors toward its bankruptcy: Increasing competition, shifting consumer tastes and the rise of online delivery platforms all have made it difficult for the 88-year-old brand to thrive.
The filing also said that the tight labor market has it made it hard to find employees and that it’s not “uncommon” for quick-service restaurants to have a 200% turnover rate.
“These challenges (together with company-specific business challenges) have resulted in deteriorating financial performance,” wrote Jonathan Tibus, Krystal’s chief restructuring officer.
Krystal filed for Chapter 11 on Sunday in Atlanta, where the company is based. The filing revealed that the company has debts between $50 million and $100 million dollars and that its restaurants will remain open during the bankruptcy process.
“The actions we are taking are intended to enable Krystal to establish a stronger business for the future and to achieve a restructuring in a fast and efficient manner,” a Krystal spokesperson said in a statement. The company is best known for serving hamburgers on steamed square buns.
The fast-food chain first opened in 1932 in Chattanooga, Tennessee before moving its headquarters to the Georgia capital in 2013. Krystal, which claims to be the second-oldest quick-service restaurant in the US, operates roughly 300 restaurants and employs 7,500 people.
Krystal shook up its leadership ranks in November, naming both a new president and chief operating officer following the abrupt departure of its CEO. The company is also experimenting with a new, smaller store format that it has credited for boosting sales.