Minnesota Firehouse Subs Franchisee Files for Chapter 11 Bankruptcy | Franchise News

  • May 14, 2023

A Minneapolis Firehouse Subs franchisee has filed for Chapter 11 bankruptcy, listing more than $1 million in debts, according to documents filed April 4.

MR Investments, led by Michael Ruoho, has two Firehouse Subs stores in two Minneapolis suburbs, as well as Pizza Man restaurants. MR Investments previously owned a third Firehouse location.

Ruoho’s attorney, John Lamey of Lamey Law Firm, provided no comment. Firehouse Subs did not respond to Franchise Times’ request for comment.

Ruoho listed liabilities totaling $1.14 million and assets totaling $68,376. MR Investments is based in Stillwater, Minnesota.

MR Investments received a $499,900 Economic Injury Disaster Loan from the Small Business Administration in June 2020.

MR Investment’s Woodbury, Minnesota, location has equipment assets totaling $56,873, but the liquidation price amounts to $28,314. The Plymouth, Minnesota, store’s assets total just shy of $55,000, with liquidation price amount to $27,483. The stores’ fixtures make up nearly all of his assets, with $8,000 listed for inventory and $4,578 for cash and other financial assets.

Ruoho is one of a handful of franchisees under the Restaurant Brands International umbrella who have filed for Chapter 11 bankruptcy this year. RBI owns Tim Hortons, Burger King, Popeyes and Firehouse Subs.

Two large Burger King franchisees, TOMS King and Meridian Restaurants Unlimited, filed for bankruptcy in January and March, respectively. TOMS, a franchisee with 90 Burger King locations, cited a loss of foot traffic for its declining revenue. Meridian listed increased costs, as well as a low sales. Meridian has 118 Burger King units.

Premier Cajun Kings, a 19-unit Popeyes franchisee, filed for bankruptcy in March. The company’s owner, Manraj “Patrick” Sidhu, died suddenly in March 2022, which Premier said “triggered great operational instability.”

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Celsius faces backlash after unveiling dull recovery plan to exit bankruptcy

  • March 6, 2023

Amid the ongoing bankruptcy hearing, the now-collapsed crypto lender Celsius Network has unveiled a plan to exit the process by rebranding it into a publicly traded recovery corporation.

Celsius lawyers shared that if the plan is approved, creditors with locked assets above an unspecified threshold will receive a token called the Asset Share Token (AST). Notably, the AST to be received will reflect the value of their assets, and holders would be entitled to earn dividends or sell them on the open market.

However, the plan has received backlash from the crypto community, with commentators terming it a potential scam. In particular, a Twitter user and commentator by the pseudonym Crypto_Tolkien suggested that the reorganization is a scam while questioning the issuance of a new token instead of the users’ originally deposited cryptocurrencies. 

“The fake reorganization is a scam to steal more of your funds locked on their platform and issue you a worthless “NEWCO” token instead of your Bitcoin, Eth, or Link. They are trying to block any other plan from being considered besides their own,” he said in a tweet on January 29. 

Controversy around payout threshold 

It is worth noting that the threshold for releasing the token has not been set, with Celsius lawyers stating that there are ongoing discussions around the matter with the Unsecured Creditors Committee (UCC). Consequently, Crypto_Tolkien alleged that the two entities are planning to steal more money.

“Celsius and the UCC are planning right now to steal your money that you withdrew 90 days prior to Celsius declaring bankruptcy through clawbacks. They don’tdon’t care if you used that money to pay taxes or for hospital bills. They will put a lien on your house and garnish your wages,” he said

Failure to get the right bids

Indeed, according to Celsius, the

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