Spicy Pickle Defaults On $4.8M Loan

Nation’s Restaurant News:

Spicy Pickle Franchising Inc., the franchisor of the fast-casual Spicy Pickle sandwich concept, defaulted on loan obligations earlier this month, resulting in the closure of six out of seven corporate-owned locations in Colorado.

According to filings with the U.S. Securities and Exchange Commission, the publicly traded company was unable to make payments due on Feb. 3, and lenders demanded immediate payment of $4.8 million in loans.

Filings indicate that certain assets will be auctioned on Feb. 21, as lenders attempt to recover some of their losses. The Denver Post reported that those assets include the furnishings, fixtures and equipment from closed company-owned locations.

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