Treasure Isles Inc., a Lexington-based company that operates franchised Long John Silver's and Fazoli's restaurants outside of Kentucky, has filed for bankruptcy protection.
The company, through its three legal entities, operates 26 Long John Silver's restaurants in Illinois and four Fazoli's restaurants in Virginia. It also operates seven A&W and Long John Silver's co-branded restaurants in Illinois.
Through its Long John Silver's locations, the company employs about 355 people. The Fazoli's arm employs 85, according to the filing.
A third arm of the company, which is based in Lexington and manages the restaurants, employs seven salaried workers here and four who work from their homes in Illinois, according to the filing.
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The company said that although the economy has generated "some strain on operations," the primary reason for filing was a Jan. 6 default notice from Long John Silver's owner Yum Brands of Louisville.
The filing stated that the company could not make an immediate payment in full and decided to file for bankruptcy protection, "as losing the franchise is not a viable option and would be devastating to all constituencies."
President Frank Cain and the company's attorney did not return messages left for them.
The Feb. 1 filing indicates that the business has between 100 and 199 creditors. Its largest unsecured claims belong to Louisville-based Long John Silver's, with a total of more than $1.26 million.