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Days after an U.S. bankruptcy judge rescinded the management of 22 stores from owners PRP Inc., 400 Arby’s workers in Alabama, Mississippi, Georgia, and Florida were working without pay, and without adequate supplies for customers.
The wages lapsed after Judge William Shulman took the stores from PRP’s control at the request of First Franchise Capital Copr., PRP’s largest lender.
The lender plans to sell the restaurants to Beavers Inc., who have been running the restaurants in the interim. Beavers Inc., which operates over 30 Arby’s restaurants along the Gulf Coast. First Franchise had previously offered to only to pay PRP $1.6 million on $8.4 million in debt owed to its creditors, while Beavers has offered to pay the entirety of the sum over 10 years, according to the Mobile Press-Register.
