Full Breakdown
Picklr Files Chapter 11 Bankruptcy Amid Lease-Guarantee Burden
By Drooid · · How we work
Core Event
The Picklr, a franchisor of indoor pickleball facilities, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas. The filing was made late on a Friday and seeks to reorganize the company while keeping its clubs and franchise locations open to members.
Background & Context
Founded in 2021, The Picklr began franchising in 2023 and quickly expanded to more than 70 locations in the United States and abroad, including Australia, Canada and Japan. The rapid growth led the company to act as guarantor for lease payments on roughly 40 early-stage franchise sites. Those guarantees later became a financial strain on the parent company, prompting the bankruptcy filing.
Official Statements & Responses
Founder and CEO Jorge Barragan said the Chapter 11 filing will allow the company to renegotiate lease terms and give franchisees a chance to achieve profitability. He emphasized that no clubs would close directly because of the filing, though some contraction is expected over the next 18-24 months. Investor-franchisee Tom Neale, who is leading an investor group providing interim financing, expressed confidence that the brand’s model remains viable. IAPPF CEO David Johnson welcomed the financing commitment, noting that the investor group’s inside knowledge should reassure franchisees and members worldwide.
Data & Statistics
- The bankruptcy petition listed approximately $915,000 in assets, $2.39 million in liabilities and $70,000 in bank accounts.
- Liabilities include a $1.5 million line of credit and about $845,000 owed on a bank loan.
- Sports Business Journal reported a net loss of $4.4 million on $10.3 million in revenue for 2025.
- An investor group has pledged either $4.5 million (per the company) or $4.8 million (per Sports Business Journal) to fund the reorganization, reflecting a slight discrepancy in reported amounts.
- As of the end of March, total liabilities were reported at roughly $19 million.
Verbatim Quotes
- “We signed, unfortunately, too many corporate guarantees that landed on the holding company, and that’s on us. I own it,” — Jorge Barragan, founder and CEO
- “While everyone’s opinion is not completely the same, there are a good many franchisees within the system, like me and our group that we’ve put together, who believe in the brand, who believe in the business and believe there’s a viable future going forward,” — Tom Neale
- “Our goal is just to make sure that over the next 18 months to two years, as we start to see the shakeout happen, that we position our franchisees in the best position,” — Jorge Barragan, founder and CEO
- “I am pleased to see an investor group, with inside knowledge and experience, step up with interim financing,” — David Johnson, IAPPF CEO