The Picklr Files for Bankruptcy to Renegotiate Lease Agreements
The fast-growing pickleball chain The Picklr has filed for Chapter 11 bankruptcy protection. The company aims to renegotiate lease agreements it guaranteed for early franchisees.
The Picklr, a prominent indoor pickleball franchise chain, has filed for Chapter 11 bankruptcy protection in the United States. The company stated its intention to use the process to renegotiate lease agreements that were guaranteed for its early franchisees.
CEO Jorge Barragan acknowledged that the company had entered into too many corporate guarantees at the holding company level. "That's on us. I own it," Barragan told The Sports Business Journal. He indicated that the Chapter 11 filing would facilitate negotiations with landlords to establish profitable business models.
Founded in 2021 amidst a surge in pickleball's popularity, The Picklr began franchising two years later. The chain currently operates over 70 domestic locations and has expanded internationally to Australia, Canada, and Japan.
In 2024, the company raised Series B funding at a valuation of $59 million. According to The Picklr, the bankruptcy filing will not result in the closure of any clubs, as it pertains only to the parent company and not the franchise and club operating businesses. Franchisees will continue operating their clubs, with local owners deciding on individual club closures.