The beloved fried chicken chain is facing rising debts and falling foot traffic
One of Chicago’s most iconic fried chicken institutions is in trouble. A franchise group behind several Harold’s Chicken locations has filed for Chapter 11 bankruptcy and shuttered at least one of its suburban restaurants—raising concerns about the future of the brand outside the city.
According to court records, Nevada-based De’nsite Inc.—which operates Harold’s locations in Homewood, South Holland, and Olympia Fields—filed for bankruptcy on July 27 in the Northern District of Illinois. The group listed just $50,000 in assets against as much as $1 million in liabilities.
The filing doesn’t impact the broader Harold’s Chicken Shack brand, but it puts a spotlight on how even well-loved names are struggling to keep the lights on amid rising costs and heavier competition.
As of this month, Harold’s in South Holland is marked “temporarily closed” online, with outdated hours still showing on Yelp. A voicemail for the restaurant confirms the decision:
“We’ve made the decision to close this location, build our growth and would love to serve you at our sister restaurants,” the message says.
The Olympia Fields and Homewood spots are still operating for now—but their future is uncertain. With debts owed to unsecured creditors and no court-approved turnaround plan yet in place, those locations could also be at risk.
Founded in 1950 by Alabama-born entrepreneur Harold Pierce, the original Harold’s Chicken Shack began as a small South Side spot with a Sunday-dinner-style recipe and a signature tangy red sauce. Over the decades, the chain earned a near-mythical status among Chicagoans, especially in Black communities, and eventually expanded to over 45 locations across 10 states.
The name itself has become so iconic that unaffiliated copycats and spin-offs popped up in and around the city—some legitimate franchises, others not. The version of Harold’s run by De’nsite is separate from the original company but still draws from its reputation and menu staples.
This isn’t the only Harold’s to run into trouble lately. A Las Vegas location filed for Chapter 11 last October, and another Illinois restaurant was shut down by the state revenue department this past June.
It’s a strange time for fried chicken. While demand remains high—U.S. restaurant chicken sales hit $70.2 billion in 2024, up 9% from the year before—many smaller chains are struggling to keep pace. Fast food giants like Popeyes, KFC, and McDonald’s have flooded the market with limited-time chicken sandwiches and value combos, squeezing out regional players who can’t match their scale.
Even the biggest names aren’t immune. KFC has reported falling traffic since 2023, and in April 2024, Sticky’s—a once-trendy chicken fingers chain from New York—filed for bankruptcy and closed several of its stores.
For now, the bankruptcy only affects the De’nsite-run locations. The Harold’s Chicken name remains intact, with dozens of independently owned shops still serving up fried wings, fries, and that unmistakable red sauce.
But for longtime fans in the south suburbs, this closure stings. It’s a reminder that even institutions can falter—and that running a fried chicken joint in 2025 is a tougher business than ever.