Integritty Group Files Chapter 11 Amid Bank Dispute Over Loan

The bankruptcy filing impacts TIG Reaper and three other affiliated entities under The Integritty Group, which is also involved with brands like Qdoba and Checkers. TIG operates seven Dave's Hot Chicken locations across New Jersey, Pennsylvania, and Delaware, with three additional locations in development. The principals of Integritty Group are Raj Mahadevia, Jiger Patel, and Pranav Desai.

Bank Midwest, a division of NBH Bank, claims that The Integritty Group's Qdoba affiliates failed to meet their loan repayment obligations. This led to the appointment of a receiver to manage TIG’s assets. Jiger Patel expressed confidence in the bankruptcy process and the group’s commitment to fulfilling their responsibilities, stating, "The bank’s lawsuit tells one side of the story. Today, we filed our complaint against the bank... and we look forward to getting to the truth and vindicating ourselves in court."

According to the bankruptcy filing, TIG owes between $10 million and $50 million to around 199 creditors, with nearly $8.75 million owed to Bank Midwest. The bank previously extended loans of $1.65 million and $8.35 million to TIG Reaper in August 2024. Patel suggested that Bank Midwest’s actions were unwarranted, noting the company was current on payments and not in default.

In its countersuit, TIG alleges that Bank Midwest interfered with a prospective $30 million sale of its Dave's Hot Chicken business, which could have settled its debts. The lawsuit claims that the bank's declaration of default prior to the sale diminished the market for TIG's restaurants, forcing potential buyers to reduce their offers. The complaint accuses the bank of acting in bad faith, stating that it "manufactured (non-monetary) defaults" to exert pressure on TIG.

In addition to traditional loans, TIG received $305,000 in merchant cash advances, which are paid back through a portion of future sales. Bankruptcy expert Alex Mattera stated earlier that such advances can create significant financial strain for smaller businesses, leading to cash flow issues.

To sustain operations during the bankruptcy proceedings, TIG secured a $200,000 debtor-in-possession loan. A representative from Dave's Hot Chicken clarified that these legal matters do not affect the broader franchise system and that the restaurants remain operational while upholding brand standards.