See what you click on FoxBusiness.com. Pickleball facility franchisor The Picklr has filed for Chapter 11 bankruptcy protection as the company seeks to reorganize after what its founder acknowledged was a costly business mistake involving advance lease guarantees. The indoor pickleball company filed Friday night in the U.S. Bankruptcy Court for the Northern District of Texas, according to a public statement from the company. Picklr said an investment group led by one of its franchisees has committed $4.5 million in financing, subject to court approval, while Sports Business Journal reported the group has committed $4.8 million to sponsor the reorganization. Founder and CEO Jorge Barragán told SBJ that the bankruptcy filing is due in part to The Picklr agreeing to serve as guarantor of facility lease payments for some of the early franchisees. Barragán said that around 40 locations had such agreements, which became an unsustainable burden for the parent company. “Unfortunately, we signed too many corporate guarantees that fell on the holding company, and that falls on us. I am the owner,” Barragán said. “Using [Chapter 11 bankruptcy] It will allow us all to work with these owners to figure out how to create profitable businesses. … I think this will open the doors for a lot of people to renegotiate with the owners and give them more success in the future.” TOM BRADY, LEBRON JAMES AMONG SUPERSTAR ATHLETES INVESTING IN MAJOR LEAGUE PICKLEBALL Tom Neale, a Picklr investor and franchisee, heads the group of investors expected to sponsor the reorganization. (Getty Images) Picklr said its clubs and franchises independently owned remain open. “Our clubs are open. Our members are playing,” the company said in a public statement cited by the International Pickleball and Padel Facility Association. “Our franchise partners own and manage their clubs, and are operating as usual.” Picklr was founded in 2021 and began franchising locations two years later. The company has expanded rapidly, with more than 70 domestic locations and facilities in Australia, Canada and Japan, according to SBJ. A balance sheet attached to the company’s petition, dated Aug. 31, lists approximately $915,000 in assets, $2.39 million in liabilities and $70,000 in bank accounts, according to IAPPF The liabilities included a $1.5 million line of credit and about $845,000 owed on a bank loan PARTY CITY BANKRUPTCY PLAN APPROVED, WITH BAD NEWS FOR SHAREHOLDERS. Tennis and pickleball courts at Walton Family Whole Health & Fitness in Arkansas. (Walton Family Whole Health & Fitness) The filing also lists seven unsecured claims described as warranty obligations totaling approximately $783,000, all marked as contingent, unliquidated and disputed, according to IAPPF. The group noted that those figures do not establish the ultimate liability or full scope of all lease warranties. company showed that The Picklr had a net loss of $4.4 million on $10.3 million in revenue in 2025. As of the end of March, the company had about $19 million in total liabilities, according to the report. Tom Neale, a Picklr investor and franchisee, leads the group of investors expected to sponsor the reorganization. Neale told SBJ that he believes the business still has a viable future. Same thing, there are many franchisees within the system, like myself and our group that we have formed, who believe in the brand, who believe in the business and believe that there is a viable future ahead,” Neale said. “We are convinced that the model works. It’s a matter of looking at some business realities and some obstacles we’ve collectively faced and addressing them head-on. And what this restructuring allows us is to have some meaningful conversations with owners and franchisees, and hopefully those conversations will provide positive results.” A BANKRUPTCY GUIDE FOR BUSINESS OWNERS Pickleball has gone from a niche pastime to one of the fastest-growing sports in America, fueling a flood of new clubs, franchises and investors trying to cash in on the growing demand. (iStock / iStock) The bankruptcy filing follows staff reductions that Described as temporary steps to prepare for the restructuring, according to SBJ, Barragán said no locations would close directly due to the bankruptcy filing, although he expects some contraction. “Our goal is simply to make sure that over the next 18 months to two years, as we begin to see the restructuring, we position our franchisees in the best position,” Barragán said. “Our ultimate goal is to position our franchisees so that they have a long runway to be there for as long as they have signed their contracts. lease.” The commitment of an investment group familiar with the company should provide some comfort. “I am pleased to see an investment group, with in-house knowledge and experience, step up interim financing,” Johnson said. “Their confidence in the company through a significant financial commitment should reassure Picklr franchisees and members around the world.” HERE Picklr’s filing comes as parts of the indoor pickleball industry face questions about whether rapid expansion, expensive leases and optimistic revenue projections can support the growth of new club models. The IAPPF said the bankruptcy does not undermine demand for the sport overall, but it does show that facility economics and operational discipline remain critical. In a previous LinkedIn post announcing Abby Olson as interim president and chief operating officer, Barragán acknowledged that the company “was growing faster than we could operate.”
