Memphis-based SERVE Holdings LLC, the largest franchisee in the country of Captain D's-brand restaurants, Thursday filed for Chapter 11 bankruptcy reorganization, according to The Daily News Online, www.memphisdailynews.com.

SERVE owns 13 Captain D's in Memphis and another 13 in the Mid-South region.

The company's Memphis office manager said Thursday afternoon executives were preparing a statement to address the filing in federal bankruptcy court. Reorganization filings do not normally mean the immediate closing of a business.

Earlier this year, SERVE signed a contract to open five Del Taco restaurants in Shelby County. They are the first franchises in the South for the second-largest Tex-Mex restaurant chain in the country. The franchise deal included rights for SERVE to build 15 restaurants in its six-state territory.

SERVE was formed in 2003 when its owners bought 20 Captain D's franchises in the Memphis area. The principals had worked together previously at Inner City Foods LLC, associated with Checker's restaurant franchises in greater Memphis.

With corporate offices in Memphis, SERVE employs more than 750 people.