A relatively recent arrival at Stony Point Fashion Park has slipped into bankruptcy court as she seeks to resolve a dispute while keeping its doors open.
The local franchise of Eggspectation, a Maryland-based breakfast chain, filed for Chapter 11 bankruptcy this week, just over a year after it opened at the South Richmond Mall.
The filing was spurred by a dispute between the local franchisee and Eggspectation’s franchisor company, although it is unclear exactly where the two sides disagree. The local franchise entity is MKS Group LLC.
“We have some disagreements with our franchisor, but we hope to resolve them professionally in the near future,” John Barrett said in an email Thursday of Virginia Beach-based Allegiant Law, which represents MKS.
The Wisconsin Bankruptcy filing lists a disputed debt to the franchisor of $ 65,000.
Chapter 11 allows a business to stay in business and keep its creditors at bay while reorganizing its finances.
Barrett said the Stony Point Eggspectation site continues to operate as usual as it seeks to revamp.
“We are open for business now and will continue to operate in the future,” he said.
Barrett said the plan is to try and settle the case without needing a court ruling.
Eggspectation head office did not respond to a request for comment.
The Chapter 11 filing lists MKS as having estimated assets of $ 1 million to $ 10 million and liabilities estimated at $ 100,000 to $ 500,000. It is headed by Vishal Patel, who is also its CEO.
The Eggspectation chain was launched in Canada in 1993. It has over a dozen branches in Canada as well as a presence in the Middle East. Most of its seven U.S. locations are in the DC area, with an eighth U.S. location to open in Maryland, according to the company’s website.
The Stony Point location opened about a year ago. The mall was recently put up for sale.