Pickleball franchise The Picklr seeks Chapter 11 protection after costly lease guarantees

The Picklr, which launched in 2021 and now operates over 70 sites in the United States and abroad, filed for Chapter 11 bankruptcy protection in the Northern District of Texas. Founder and CEO Jorge Barragan explained that the company had acted as guarantor for lease obligations at roughly 40 early franchise locations, creating an unsustainable financial load. An investor consortium headed by franchisee Tom Neale has committed between $4.5 million and $4.8 million to support the reorganization, pending court approval.

Despite the filing, all clubs and independently owned franchises stay open and members continue to play. A balance sheet attached to the petition lists assets of about $915,000, liabilities of $2.39 million, including a $1.5 million line of credit and an $845,000 bank loan. The company hopes the restructuring will allow renegotiation with landlords and give franchisees a longer runway. International Association of Pickleball and Padel Facilities and its CEO David Johnson welcomed the investor financing as a sign of confidence in the brand.