Jack’s Donuts, a famous Indiana doughnut shop that has been making Hoosiers happy for more than 60 years, has filed for Chapter 11 bankruptcy protection. According to papers filed in the U.S. Bankruptcy Court for the Southern District of Indiana, the filing, which was made on October 29, 2025, includes Jack’s Donuts of Indiana Commissary LLC and subsidiary companies Marcum Industries LLC and KCL Group Inc.
A Legacy for the Family Since 1961
Jack Marcum Sr. started the company in New Castle, Indiana, and it has been run by the same family for generations. Jack “Lee” Marcum III is in charge of the chain. It started franchising in 2013 and today has roughly 24 sites in central Indiana run by 14 independent franchisees. Jack’s has a dedicated local following because of its handmade doughnuts prepared from family recipes.
Changes in operations caused problems
Jack’s opened “The Commissary” in October 2023. This was a central hub for manufacturing and delivery that was meant to make things run more smoothly. However, this shift meant that many franchisees had to stop making doughnuts in their stores and instead buy them from the commissary. Customers noticed the difference, and some even compared the new items to “gas station donuts.” Franchisees said that sales were going down and customers were unhappy because of this.
Big Creditors and Money Problems
Court documents show that Jack’s Donuts owes more than $14 million and has only $1.4 million in assets. Old National Bank has ordered the corporation to pay $3.5 million, and Carter Logistics, a trucking company, is also suing the company for unpaid delivery fees. Angi Bone, a former franchisee who now runs Boomtown Donuts, is another creditor who submitted a claim for $40,000. There are also several vendors connected to linked businesses.
Franchisees are still in business.
Even though the company went bankrupt, franchise-owned stores are still open. Donna and Paul Ganote, who own businesses in Brownsburg, Plainfield, Heartland Crossing, Franklin, Southport Road, and South Bend, said that their shops still make fresh doughnuts every day. “We’re open and committed to serving our customers like always,” they said.
Company Statement: “It’s About People, Not Just Donuts”
Jack’s Donuts told customers on Facebook that business would go on as usual:
“We have plans for our activities to keep going without any breaks in the future. Jack’s Donuts has been about more than just donuts for more than 60 years. It’s been about people.
As the reorganization process goes on, Jack’s intends to keep its community-driven brand, which has been known for Indiana mornings since 1961, while also stabilizing its finances.
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