Picklr's parent company files for bankruptcy. Here's what it means for Rancho Cordova players

The franchisor behind the region's only Picklr club filed for Chapter 11 in Texas. The Rancho Cordova club is owned by a local franchisee, and the company says franchise clubs are running as usual. Members with prepaid plans should still keep their receipts.

Illustration: Sacconews

The Picklr, a fast-growing indoor pickleball chain whose first California club opened in Rancho Cordova, has filed for Chapter 11 bankruptcy protection. The Sacramento Business Journal reported the local connection on Oct. 15.

Picklr, Inc. filed on Oct. 9, 2026, in the U.S. Bankruptcy Court for the Northern District of Texas (Case No. 26-34687-swe11). Its wholly owned subsidiary, Picklr Clubs Inc., filed the next day (Case No. 26-34690). Both companies chose Subchapter V, a faster, cheaper version of Chapter 11 for small businesses. The two cases are being jointly administered, according to court filings posted by claims agent Omni Agent Solutions.

The detail that matters most locally: Picklr Franchise Inc., the Utah subsidiary that sells and supports franchises, is not in bankruptcy, according to the same filings.

U.S. Bankruptcy Court, N.D. Texas. In re Picklr, Inc., Case No. 26-34687-swe11, Doc 1, p. 1

Why the company filed

Founder and CEO Jorge Barragan told Sports Business Journal that the parent company had agreed to guarantee facility lease payments for some early franchisees. He said about 40 locations had those guarantees, and they became "an untenable financial burden."

"We signed, unfortunately, too many corporate guarantees that landed on the holding company, and that's on us. I own it," Barragan said, as quoted by Fox Business. He said the plan is to use the bankruptcy to renegotiate with landlords.

An investor group called Dynamus Alliance, led by Picklr investor and franchisee Tom Neale, would sponsor the reorganization. SBJ reported the group committed $4.8 million in debtor-in-possession financing. The company's own statement put the figure at $4.5 million, subject to court approval.

The numbers

• 2025 results: a net loss of $4.4 million on revenue of $10.3 million, according to financial statements in the company's franchise disclosure document, as reported by SBJ.
• Total liabilities: about $19 million as of the end of March, per SBJ. The Sacramento Business Journal also cited roughly $19 million in liabilities.
• Petition balance sheet (Aug. 31): about $915,000 in assets, $2.39 million in liabilities and $70,000 in the bank, according to the International Association of Pickleball and Padel Facilities (IAPPF), as cited by Fox Business. The liabilities included a $1.5 million line of credit and about $845,000 owed on a bank loan.
• Lease guarantees: seven unsecured guaranty claims totaling about $783,000, all marked contingent, unliquidated and disputed. IAPPF noted that this figure does not settle final liability or show the full scope of the guarantees.

The gap between the $2.39 million on the petition balance sheet and the roughly $19 million in total liabilities likely comes down to different entities, dates and accounting treatment.

The Rancho Cordova club

The Picklr Rancho Cordova is at 11135 Trade Center Drive, Suite 110, in a 30,000-square-foot former warehouse next to Pickup USA, according to the company's website and The Sacramento Bee. The Bee identified the co-owners as Manish Kapadia and Eunice Lee and reported it was the brand's first California location. The club's web page lists memberships starting at $99 a month.

Because it's a franchise, the club is owned by a local operator, not by the bankrupt parent. "Our franchise partners own and run their clubs, and they're operating as usual," the company said in a statement cited by IAPPF. Barragan said no locations would close as a direct result of the filing, though he expects "contraction" over time.

Not on the creditor lists. Sacconews reviewed both bankruptcy petitions. Neither Picklr, Inc.'s nor Picklr Clubs Inc.'s list of its 20 largest unsecured creditors names the Rancho Cordova club, its address, its co-owners or the building's owner. (The building is marketed by Sacramento-based Ethan Conrad Properties.) Picklr, Inc.'s list includes seven lease-guaranty claims totaling $783,079.47. The landlords behind them are in Chicago, Texas, Florida, and one in San Mateo (Upper Fork LLC, $209,176.16). Clubs' lease claims are likewise for landlords outside the Sacramento region.

That's good news for local players, but it isn't a clean bill of health. These top-20 lists show only the biggest unsecured claims. The full schedules of creditors and leases weren't yet filed in the documents we reviewed (the court issued a deficiency notice Oct. 13). Barragan has said about 40 locations had guarantees, far more than the seven listed.

The club's website lists it as open daily, from 7 a.m. to as late as midnight, with memberships from $99 a month and an unlimited adult plan at $159.

Wallet math

Graphic: Sacconews

For a franchisee: Picklr's 2026 disclosure document estimates the total cost to open one club at $1,252,400 to $2,077,300. That includes a $60,000 non-refundable franchise fee, $500,000 to $750,000 for courts, furnishings and fixtures, and $320,000 to $555,000 for construction. Owners then pay a 7% royalty on gross sales and 2% to an ad fund, per FDD summaries. On a club with $1 million in annual sales, that's $90,000 a year back to the franchisor before rent.

For the system: outlets grew from 6 at the end of 2023 to 24 in 2024 to 59 at the end of 2025 (56 franchised, 3 company-owned), with 31 more signed but unopened, per FDD summaries. SBJ puts today's count at more than 70 U.S. locations. That pace is the same rapid growth Barragan admitted was "faster than we could operate."

For members: at $99 a month, a year of membership costs about $1,188. If you prepaid, here are some low-cost precautions:

1. Pay month to month instead of prepaying long terms until the reorganization is clearer.
2. Save receipts and your membership agreement, and note which legal entity charged your card.
3. If a club closes with prepaid time left, contact your card issuer about a dispute promptly. Disputes have time limits.
4. Watch the claims-agent site (Omni Agent Solutions) for a claims deadline if you were billed by a debtor entity.

For landlords: the case is mainly about leases. A Subchapter V debtor can try to renegotiate or reject leases it is party to, including guarantees. Landlords of guaranteed sites should watch the docket.

The bigger picture

IAPPF said the filing doesn't undermine demand for pickleball, but it shows that "facility economics and operating discipline remain critical." Expensive warehouse leases and optimistic revenue projections are being tested across the indoor-club boom. Locally, SBJ has also covered new pickleball venues in Folsom and Elk Grove and Pickleball Kingdom's first area site.