Dozens of Burger King locations in bankruptcy
Consolidated Burger Holdings, which operates 57 Burger King locations out of Destin, Florida, submitted Chapter 11 bankruptcy filings on April 14 in the US Bankruptcy Court for the Northern District of Florida, according to USA Today.
The company has been dealing with financial struggles since the COVID-19 pandemic. Its 57 Burger King locations are spread from Valdosta, Georgia to Tallahassee, Florida. It also has four restaurants inside Walmart stores.
'The debtors' business suffered significantly from loss of foot traffic, resulting in declining revenue without proportionate decreases in rental obligations, debt service and other liabilities,' the filing stated.
Over the past two years, sales have declined and losses have increased. In fiscal year 2024, the company had sales of $67m and an operating loss of $12.5m. The year prior, sales were $76.6m and loss was $6.3m.
Consolidated Burger is planning to continue operating its restaurants as it searches for a buyer for its company and assets, valued at $78m.
The company had been searching for a buyer seven months before filing for bankruptcy.
Burger King has been facing its own financial struggles and is currently undergoing a rebranding, offering more comfortable chairs in stores and kiosks similar to those at McDonald's. The refurb is set to cost $2.2bn, with approximately 85 percent to 90 percent of stores getting a new look.
Its parent company is Restaurant Brands, which owns Tim Hortons, Popeyes and Firehouse Subs.
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