This is the donut chain forced to file for Chapter 11 bankruptcy and what it means for its customers
Here’s everything you need to know about Jack’s Donuts of Indiana Commissary filing for bankruptcy.
In a filing dated October 29 in the U.S. Bankruptcy Court for the Southern District of Indiana, Jack’s Donuts of Indiana Commissary LLC sadly submitted for Chapter 11 bankruptcy protection.
The move, which will upset many fans, comes amid mounting legal and financial troubles for the company. A report shows that the commissary arm, opened just last year, listed more than 100 creditors and liabilities totalling approximately $14.2 million.
What makes this move especially notable is that the filing covers not only the commissary operation but also two affiliated entities: Marcum Industries LLC and KCL Group Inc., both of which are tied to the company’s founder and CEO, Lee Marcum.
A spokesperson said that local Jack's Donuts franchises, including the one in Richmond, will be unaffected by a bankruptcy filing at the corporate level. pic.twitter.com/rexjs9Egb0
— Jeff Lane (@jeff_lanenews) October 31, 2025
The reason behind the financial collapse appears to be multifaceted. One central issue: franchise-owners say they operate independently and had no involvement in the commissary’s finances. For instance, franchisees Donna and Paul Ganote emphasized on social media that their stores are separate, fully operational, and not affected by the commissary’s filing.
Experts describe Chapter 11 as a chance for a business to reorganise, rather than simply liquidate. “Typically, there will be an effort to make the business more effective,” Nicholas Georgakopoulos, a business law professor at IU McKinney Law School in Indianapolis, told WRTV. “So there will also be a reorganization of the business. Reorganization should be thought of mostly as a reorganization of ownership and debt. It might be that only the obligations and the ownership change.”
Despite repeated requests from WRTV, the company and Marcum did not agree to a live interview, instead providing a brief statement. In it, they indicated that the ongoing media investigation had placed a burden on franchisees, employees and investors, and suggested they were focused on running the business rather than commenting publicly.
Another great Breakfast Served courtesy of Jacks Donuts! https://t.co/STYmoqAKmV pic.twitter.com/hIcmb9l04P
— Nate Laszewski (@natelaszewski) February 28, 2023
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“The stress and disruption caused by this news investigation, led by Kara Kenney, have placed an undue burden on our franchisees, employees, their families, and our investors—at a time when stability is critical to our organization,” Marcum said in an emailed statement in June, “We want to be clear: our leadership team is fully engaged in managing our company. Engaging with the media on this matter is not something we are prioritizing at this time, nor is it a distraction we can afford. We will not be providing any comment on internal matters.”
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