Ron Lee, owner of two now-closed Huddle House restaurants, filed last week for Chapter 7 bankruptcy.
In the court filing, Lee, doing business as Leaky Cup Holdings, reported liabilities of $1.2 million and assets of $316,000.
Chapter 7 means a liquidation of the business and any non-protected personal assets.
Lee and fellow-franchisee David Key opened a Huddle House location in Newton in mid-2011. A second one opened in El Dorado shortly after.
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The largest listed debtors listed in the bankruptcy are Kanza Bank, $404,147; Relianz Bank, $347,461; and the U.S. Small Business Administration, $260,598.
Lee decline to comment.