Overview
- The Phoenix-born drive‑thru chain filed for Chapter 11 and permanently shut its roughly 70 Arizona and Nevada locations, with final guest service on Wednesday, Aug. 5.
- Court filings list the company’s assets and liabilities each in the roughly $500 million to $1 billion range and say Chapter 11 will be used to realize asset value and address obligations in an orderly way.
- The company and court papers point to an investor-driven rapid expansion, mislocated units that reduced drive‑through visibility, and high fixed overhead from a centralized commissary model as principal strategic failures.
- Founders Tony and Roushan Christofellis left after selling to private equity in 2021, and later leadership turnover and waves of closures in 2024–2026 signaled a prolonged retrenchment before the final shutdown.
- As a developing step in the bankruptcy, the debtor has moved to sell most leases to Dutch Bros in a proposed roughly $105 million transaction for dozens of stores, a sale now pending bankruptcy-court approval.