The Danish operator of Kentucky Fried Chicken (KFC) restaurants, Isken Aps, has filed for bankruptcy, impacting 11 restaurants and almost 200 employees across Denmark. The bankruptcy follows a series of negative events, including allegations of food safety violations and subsequent termination of the franchise agreement by KFC’s European headquarters.

The financial difficulties of Isken Aps came to light after a documentary revealed employees were allegedly altering expiration dates on thawed chicken. The documentary prompted an investigation by the Danish Food Agency, which resulted in four negative “smiley” ratings for the restaurants. These ratings are indicative of serious food safety concerns.

An inspection report from the KFC in Odense cited issues such as mold-like growth, dust accumulation, and cobwebs, contributing to the decision by KFC’s European headquarters to terminate the agreement with Isken Aps. The headquarters demanded the closure of the restaurants, a request that Isken Aps initially resisted.

Ultimately, Isken Aps faced insurmountable financial challenges, culminating in the inability to pay employee salaries two weeks prior to the bankruptcy filing. The company, which operated 11 KFC locations in cities including Odense, Copenhagen, Rødovre, Greve, Tilst, Horsens, Vejle, and Herning, officially entered bankruptcy proceedings on July 18.

Kentucky Fried Chicken, an American fast-food chain specializing in fried chicken, boasts a global presence with over 30,000 restaurants in 145 countries. The bankruptcy of its Danish operator marks a significant setback for the brand’s operations in Denmark.