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Pickleball facility franchiser The Picklr has filed for Chapter 11 bankruptcy as the company seeks to reorganize after what its founder admitted was a costly business mistake related to advance rental guarantees.
The indoor pickleball company filed Friday evening 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 had committed $4.5 million in financing, subject to court approval, while the Sports Business Journal reported the group had committed $4.8 million to sponsor the reorganization.
Founder and CEO Jorge Barragan told SBJ that the bankruptcy filing stems in part from The Picklr agreeing to serve as a guarantor for facility lease payments from certain early franchisees. Barragan said about 40 sites had these arrangements, which became an untenable burden on the parent company.
“We unfortunately signed too many corporate guarantees that landed on the holding company, and it’s on us. I own it,” Barragan said. “Using (Chapter 11 bankruptcy) is going to allow all of us to work with these owners to figure out how to create profitable businesses. … I think it’s going to open the door for a lot of people to renegotiate with the owners and give people more success in the future.”
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Picklr investor and franchisee Tom Neale is leading the investor group expected to sponsor the reorganization. (Getty Images)
The Picklr said its clubs and independent franchises 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 operate their clubs, and they are operating as usual.”
The Picklr was founded in 2021 and began franchising locations two years later. The company has grown 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 approximately $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 approximately $845,000 owed on a bank loan.
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Tennis and pickleball courts at Walton Family Whole Health & Fitness in Arkansas. (Walton Family Whole Health and Fitness)
The filing also lists seven unsecured claims described as warranty obligations totaling approximately $783,000, all marked as conditional, unliquidated and contested, according to IAPPF. The group noted that these figures do not establish final liability or the full extent of all rental 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 revenue of $10.3 million in 2025. As of the end of March, the company had total liabilities of about $19 million, according to the report.
Picklr investor and franchisee Tom Neale is leading the investor group expected to sponsor the reorganization. Neale told SBJ he believes the company still has a viable future.
“While not everyone’s opinion is completely the same, there are a good number of franchisees within the system, like myself and our group that we’ve put together, who believe in the brand, who believe in the business and believe there is a viable future,” Neale said.
“We believe the model is working. It’s about looking at some of the business realities and headwinds that we’ve collectively faced and facing them head on. And this restructuring allows us to have meaningful conversations with owners and franchisees, and I hope those conversations produce positive results.”
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Pickleball has gone from a niche pastime to one of the fastest-growing sports in America, fueling a rush of new clubs, franchises and investors trying to profit from the growing demand. (iStock/iStock)
The bankruptcy filing follows staff reductions that Barragan described as temporary measures to prepare for restructuring, according to SBJ. Barragan said no locations will close directly due to the bankruptcy filing, although 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 disruption happening, that we position our franchisees in the best position,” Barragan said. “Our ultimate goal is to give our franchisees a long runway to be there for the duration of their lease signing.”
IAPPF CEO David Johnson said the financial commitment from a group of investors familiar with the business should provide some assurance.
“I am pleased to see a group of investors, with deep knowledge and experience, stepping up with bridge financing,” Johnson said. “Their confidence in the company through a significant financial commitment should reassure franchisees and Picklr members around the world.”
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The Picklr filing comes as parts of the indoor pickleball industry question whether rapid expansion, expensive leases and optimistic revenue projections can support the growth of new club models. The IAPPF said the bankruptcy does not harm demand for the sport in general, but shows that facility economics and operational discipline remain essential.
In a previous LinkedIn post announcing Abby Olson as interim president and COO, Barragan acknowledged that the company was “growing faster than we could operate.”
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