Fast food chain Back Yard Burgers — formerly based in Memphis — announced Monday, Oct. 28, that its Chapter 11 bankruptcy reorganization plan has been confirmed. 

The plan’s confirmation is the company’s first step toward recovery after “experiencing significant headwinds, material operational challenges and severe pressure on margins as a result of the pandemic,” according to a press release. 

“This marks a significant step forward in our efforts to emerge from the process with a more efficient operational structure and a bright future of growing and expanding the brand,” Mark Cote, CEO of Back Yard Burgers, said in a press release.

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Nashville-based Back Yard Burgers was based in Memphis until 2007. The chain has 11 locations nationwide, including three in Memphis. 

In 2023, Back Yard Burgers, under Tantum Cos. LLC, filed for a Chapter 11 bankruptcy, allowing the company to continue operating while creating a plan to pay its creditors.

In May, Back Yard Burgers was faced with potential liquidation after the U.S. Bankruptcy Administrator for the Western District of North Carolina filed a motion to change the Chapter 11 bankruptcy to a Chapter 7 case — which would sell the debtor’s nonexempt property and distribute the proceeds to its creditors. 

The motion was due to Back Yard Burgers inability to operate with consistent profits over 10 months while the Chapter 11 case was pending and lack of net income to fund a full plan of reorganization, according to the bankruptcy’s administrator’s filing.

The first Chapter 11 plan was submitted by Tantum in January; however, the plan was extended many times due to Tantum’s negotiation with the committee and Guaranty Bank & Trust Co., the company’s lender and agent. 

Tantum had between 200-999 creditors, according to a June 2023 document with estimated assets between $1 million and $10 million and its estimated liabilities between $10 million and $50 million.