Pickleball facility franchisor files for bankruptcy as founder acknowledges business mistake: 'I own it'

Pickleball facility franchisor The Picklr has filed for Chapter 11 bankruptcy protection as the company seeks to reorganize after what its founder acknowledged was a costly business mistake tied to early lease guarantees.

The indoor pickleball company filed late Friday in the U.S. Bankruptcy Court for the Northern District of Texas, according to a public statement from the company. The Picklr said an investor group led by one of its franchisees has committed $4.5 million in financing, subject to court approval, while Sports Business Journal reported the group has committed $4.8 million to sponsor the reorganization.

Founder and CEO Jorge Barragan told SBJ the bankruptcy filing stems in part from The Picklr agreeing to serve as a guarantor for facility lease payments for some early franchisees. Barragan said about 40 locations had those arrangements, which became an untenable burden for 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 said. "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."

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The Picklr said its clubs and independently owned franchise locations remain open.

"Our clubs are open. Our members are playing," the company said in a public 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."

The Picklr was founded in 2021 and began franchising locations two years later. The company has expanded rapidly, with more than 70 domestic locations and facilities in Australia, Canada and Japan, according to SBJ.

A balance sheet attached to the company’s petition, dated Aug. 31, listed about $915,000 in assets, $2.39 million in liabilities and $70,000 in bank accounts, according to IAPPF. The liabilities included a $1.5 million line of credit and about $845,000 owed on a bank loan.

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The filing also listed seven unsecured claims described as guaranty obligations totaling about $783,000, all marked contingent, unliquidated and disputed, according to IAPPF. The group noted those figures do not establish final liability or the full scope of all lease guarantees.

SBJ reported that financial statements included in the company’s franchise disclosure document showed The Picklr had a net loss of $4.4 million on $10.3 million in revenue in 2025. As of the end of March, the company had about $19 million in total liabilities, according to the report.

Tom Neale, a Picklr investor and franchisee, is leading the investor group expected to sponsor the reorganization. Neale told SBJ he believes the business still has a viable future.

"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 said.

"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. And what this restructuring allows us is to have some meaningful conversations with landlords and franchisees, and hopefully those conversations provide positive outcomes."

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The bankruptcy filing follows staff reductions that Barragan described as temporary steps to prepare for restructuring, according to SBJ. Barragan said no locations would close directly because of the bankruptcy filing, though he expects some contraction.

"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 financing commitment from an investor group familiar with the company should provide some reassurance.

"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."

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The Picklr’s filing comes as parts of the indoor pickleball industry face questions about whether rapid expansion, expensive leases and optimistic revenue projections can support the growth of new club models. IAPPF said the bankruptcy does not undermine demand for the sport broadly, but does show that facility economics and operating discipline remain critical.

In an earlier LinkedIn post announcing Abby Olson as acting president and chief operating officer, Barragan acknowledged that the company "was growing faster than we could operate."