News

Papa John's franchisee files for bankruptcy, paychecks on hold

September 29, 2011

An 84-unit Papa John's Pizza franchisee filed for bankruptcy earlier this week, a move that has held up paychecks for employees at its Colorado and Minnesota stores, despite those stores' continued operation.

The Denver Post reports that PJCOMN Acquisition Corp. requested Chapter 11 protection on Sept. 27.

An emergency motion has since been filed so employees can receive pay while the company works through the legal process.

According to the story, notices were posted on the doors of the units, stating: "Due to 'some confusion' (connected to the bankruptcy filing) the payroll checks that went out today may not have been honored. This is not the company's fault and we are working to remedy the confusion and restore the paycheck funding by the end of this week."

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