Rapid expansion and aggressive corporate lease guarantees pushed the $59M-valued franchisor into Chapter 11 reorganization.
Photo: Adobe Stock
Listen to this ArticleMore info
0:00 / 0:00
Pickleball’s rapid growth hasn’t been enough to keep one of its biggest indoor franchisors—The Picklr—out of bankruptcy court.
Last week, the popular indoor pickleball franchise filed for Chapter 11 bankruptcy with the company saying it plans to use the process to renegotiate lease agreements it guaranteed for early franchisees.
“We believe in this brand and in this business. Picklr has built something special with its clubs, its members and its franchise network, and this repositioning sets it up for sustainable growth,” Tom Neale, group lead for Dynamus Alliance said in a press release shared with Inc. “We’re proud to support the company through this process and into its next chapter.”
The press release added that the filing won’t shut down any clubs right now as it covers only the parent company, not its franchising and club operating businesses, so franchisees will keep their clubs running as normal. Local owners, not the parent, decide whether their clubs stay open, the company said. Its partners in Canada, Australia and Japan will also keep operating and play a major role in its future.
Refreshed leadership advice from CEO Stephanie Mehta
“We signed, unfortunately, too many corporate guarantees that landed on the holding company. And that’s on us. I own it,” Jorge Barragan, the company’s CEO, told The Sports Business Journal. “Utilizing [Chapter 11 bankruptcy] is going to allow all of us to work with these landlords to figure out how to create profitable businesses. … I think this is going to open up doors for a lot of people to renegotiate with the landlords and give people more success moving forward.”
Founded in 2021 riding the wave of pickleball’s post-pandemic boom, The Picklr began franchising two years later and has scaled quickly ever since. It now operates more than 70 domestic locations and has expanded internationally to Australia, Canada and Japan.
In 2024, it raised a Series B round led by Pickleball Inc., the parent company of the PPA Tour and Major League Pickleball, at a $59 million valuation.