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Farragut’s KFC closed, for sale


Farragut’s Kentucky Fried Chicken — located off West End Avenue — apparently has closed, and it’s unclear if the restaurant will open again.

A sign posted on the door and at the drive-through reads, “CLOSED Due to maintenance repairs we are currently closed. Sorry for the inconvenience. KFC Cedar Bluff will be more than happy to serve you. –KFC management.”

According to Knox County GIS mapping service, the property, 11201 Kingston Pike, (along with nine other Knoxville-area KFC locations) belongs to Tennco Food Inc., based out of Dallas, Texas.

Tennco filed for Chapter 11 bankruptcy in May of this year, and according to an international business law firm’s website, the Farragut KFC is up for sale.

According to Greenberg Traurig’s July 14 online newsletter, Tennco “has filed a motion with the Court for the sale of the restaurant property located at 11201 Kingston Pike in Knoxville, Tennessee, to Bethel Development Company for $600,000; the Court has not yet issued a ruling on this motion.”


A spokesman with Tennco, Dave Audrain, confirmed that.

“Because of the heat and the temperatures and everything like that, we started to deal with some temperature problems for the coolers and stuff like that, so that was part of the reason we closed to begin with.

“Then we began looking at the repairs and everything ... and since the property was on the market and was probably going to be closed on, we just decided, ‘OK, instead of reopening it, why, we’ll just leave it closed until it gets sold,’” Audrain said.

The restaurant closed in early August.

Audrain didn’t know much about the potential buyer, Bethel Development Company, or whether that company planned to reopen KFC or open another restaurant or business at the location.

A phone number for Powell’s Bethel Development LLC had been disconnected. Founder Steve Bethel could not immediately be reached.

The Greenberg Traurig’s newsletter states, “The Debtor states that its principal reasons for filing for bankruptcy are increased food costs, weather issues and the national decline of the KFC brand. The Debtor’s real property consists of buildings and land comprising six of the restaurants, which are valued by the Debtor at a total of $25.8 million.”

“The Debtor’s income for 2009 was $10.2 million; for 2010 it was $9.4 million; and for 2011 to date it is $2.5 million.”

The newsletter can be found at www4.gtlaw.com/

 

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