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The Picklr, a major indoor pickleball facility franchisor, has filed for Chapter 11 bankruptcy protection as it seeks to reorganize its finances after what the company’s founder called a costly business mistake involving early lease guarantees. The filing was made late Friday in the U.S. Bankruptcy Court for the Northern District of Texas, according to a public statement from the company.
Despite rapid national growth—with more than 390 franchise locations scheduled to open in 42 states and expansion into Canada—the company’s aggressive early leasing strategy created financial strain. The Picklr’s founder acknowledged that these lease guarantees led to significant business costs that required restructuring. According to the company, an investor group led by one of its franchisees has committed $4.5 million in financing to support the reorganization, pending court approval. Meanwhile, as reported by the Sports Business Journal, the total commitment is $4.8 million to sponsor the bankruptcy process.
The Picklr, headquartered in Kaysville, Utah, has raised $9 million in total funding and was recently valued at $59 million following a Series B round led by Pickleball Inc.The company operates nearly 200 clubs and has sold over 300 franchises, with plans to open dozens more locations across the United States in 2024 and 2025. The company also announced a strategic partnership with TPC Development to launch 65 new locations in Canada, with the first set to open in Toronto in 2025.
Chaifetz Group, which owns the St. Louis Shock Major League Pickleball franchise, recently took a significant equity stake in the company and will join The Picklr’s board. Ross Chaifetz, managing director of Chaifetz Group, said, “The economics of the business are very, very healthy because they’re frontloaded by the franchise fees when people purchase the location, and then supplemented by the royalties that come in over time as those locations go live.” He emphasized that the investment is about building a broader pickleball ecosystem and diversifying interests in the recreational and professional sides of the sport.
As The Picklr moves through bankruptcy proceedings, the company aims to continue its planned expansion in both the U.S. and Canada, relying on new financing and strategic partnerships to stabilize operations and drive future growth.