The company behind one of America's biggest indoor pickleball chains has filed for bankruptcy after its founder admitted that a bad business decision pushed the company over the edge.

The Picklr operates more than 70 indoor pickleball facilities across the US and in Australia, Canada and Japan. The company filed for Chapter 11 bankruptcy protection on October 9 in Texas.

Founder and chief executive Jorge Barragan acknowledged that his company took on too many financial obligations by guaranteeing lease payments for some of its early franchisees.

'We signed, unfortunately, too many corporate guarantees that landed on the holding company, and that's on us. I own it,' Barragan told Sports Business Journal.

Around 40 locations had corporate guarantees, which became an unsustainable burden for the parent company, he said.

The bankruptcy filing is intended to give the business time to restructure its finances and renegotiate lease agreements with landlords, rather than shut down its network of clubs.

The Picklr said its clubs and independently owned franchise locations remain open, with members continuing to play as usual.

'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.

Barragan said Chapter 11 would allow the company to work with landlords to make its franchise locations more profitable and give operators a better chance of succeeding over the long term.

The filing comes after a period of rapid expansion for the company, which was founded in 2021 and began franchising in 2023 as interest in pickleball surged.

But its growth has come with significant financial pressure. 

The Picklr recorded a net loss of $4.4 million on $10.3 million in revenue in 2025, according to financial statements reported by Sports Business Journal.

The company's total liabilities had reached approximately $19 million by the end of March, the publication reported.

An investor group led by Picklr franchisee and investor Tom Neale has committed $4.8 million to sponsor the company's reorganization and $4.5 million in financing, subject to court approval.

Neale told Sports Business Journal that he and other franchisees still believe the business has a future.

'We're convinced that the model works,' he said, adding that the restructuring would allow the company to address business challenges and negotiate with landlords and franchisees.

The bankruptcy filing follows staff reductions that Barragan described as a temporary measure to prepare for restructuring.

While the company does not expect locations to close as a direct result of the filing, Barragan acknowledged that some contraction could lie ahead.

He said the goal was to put franchisees in the strongest possible position over the next 18 months to two years, allowing them to remain in business for the duration of their leases.