The Picklr, an indoor pickleball facility franchisor, filed for Chapter 11 bankruptcy protection late Friday in the U.S. Bankruptcy Court for the Northern District of Texas, according to a public statement from the company.
Founder and CEO Jorge Barragan said the filing stems largely from corporate guarantees the company made on facility leases for roughly 40 early franchisees, an arrangement he said placed an unsustainable financial burden on the parent company.
“We signed, unfortunately, too many corporate guarantees that landed on the holding company, and that’s on us. I own it,” Barragan told Sports Business Journal. “Utilizing [Chapter 11 bankruptcy] is going to allow all of us to work with these landlords to figure out how to create profitable businesses. … I think this is going to open up doors for a lot of people to renegotiate with the landlords and give people more success moving forward.”
An investor group led by Picklr franchisee Tom Neale has committed financing to sponsor the reorganization, subject to court approval. The company’s statement put the figure at $4.5 million, while Sports Business Journal reported the group has committed $4.8 million.
The Picklr said its clubs remain open and operating as usual. “Our clubs are open. Our members are playing,” the company said in a statement cited by the International Association of Pickleball and Padel Facilities. “Our franchise partners own and run their clubs, and they’re operating as usual.”
Founded in 2021 and franchising since 2023, The Picklr has grown to more than 70 domestic locations along with facilities in Australia, Canada and Japan, according to Sports Business Journal.
A balance sheet attached to the bankruptcy petition, dated Aug. 31, listed about $915,000 in assets against $2.39 million in liabilities, including a $1.5 million line of credit and roughly $845,000 owed on a bank loan, according to IAPPF. The filing also listed seven unsecured claims tied to guaranty obligations totaling about $783,000, all marked contingent, unliquidated and disputed. IAPPF noted the figures do not establish final liability or the full scope of lease guarantees across the company.
Sports Business Journal reported that financial statements in the company’s franchise disclosure document showed a net loss of $4.4 million on $10.3 million in revenue in 2025, with total liabilities of about $19 million as of the end of March.
Neale, who is leading the investor group, said he remains confident in the underlying business.
“While everyone’s opinion is not completely the same, there are a good many franchisees within the system, like me and our group that we’ve put together, who believe in the brand, who believe in the business and believe there’s a viable future going forward,” Neale told Sports Business Journal. “We’re convinced that the model works. It’s a matter of looking at some business realities and some headwinds that we collectively have faced and address those head on.”
The bankruptcy follows staff reductions that Barragan described as temporary steps taken to prepare for restructuring. He said no locations would close directly as a result of the filing, though he expects some contraction over time.
“Our goal is just to make sure that over the next 18 months to two years, as we start to see the shakeout happen, that we position our franchisees in the best position,” Barragan said. “Our ultimate goal is to position our franchisees to have a long runway to be there for the whole time that they’ve signed their leases.”
IAPPF CEO David Johnson said the investor commitment should offer some reassurance to franchisees and members. “I am pleased to see an investor group, with inside knowledge and experience, step up with interim financing,” Johnson said. “Their belief in the company through a significant financial commitment should be reassuring to franchisees and Picklr members worldwide.”
IAPPF said the bankruptcy does not reflect a decline in demand for the sport but underscores that facility economics and operating discipline remain critical as the indoor pickleball industry grapples with rapid expansion and expensive lease commitments.
In an earlier LinkedIn post announcing Abby Olson as acting president and chief operating officer, Barragan acknowledged the company “was growing faster than we could operate.”
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