Dozens of Major Fast Food Locations at Risk of Closure After $37 Million Bankruptcy
If you're a fan of Burger King and happen to live in Florida or Georgia, your go-to fast food fix may be at risk.
On Monday, April 14, Consolidated Burger Holdings, one of Burger King's largest franchisees with 57 locations, filed for Chapter 11 bankruptcy protection.
The company, operating out of Destin, Florida, owes creditors nearly $37 million, according to several reports.
"Over the past several years, and particularly as a result of the COVID-19 pandemic, 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," Consolidated Burger Holdings shared in the filing, per USA Today.
"The Debtors have faced significant hurdles resulting from industry headwinds which, combined with the Debtors' highly leveraged balance sheet, have significantly challenged the Debtors' business and depleted their liquidity," the filing added.Prior to filing for bankruptcy, Consolidated Burger Holdings had been seeking a buyer for their locations for seven months. As it stands, the 57 restaurants will continue operating amid the bankruptcy while actively seeking new ownership.
According to Consolidated Burger Holdings' Chief Restructuring Officer, Joseph Luzinski, 'recent increases in costs of shipping and food, decreased availability of labor and inflation' are to blame for the company's steady decline.
Unfortunately, Consolidated Burger Holdings isn't the first Burger King franchisee to file for bankruptcy.
Take TOMS King Holdings LLC, for example. The company owned 90 Burger King restaurants across Illinois, Ohio, Pennsylvania, Virginia, and North Carolina.
They filed for bankruptcy in January 2023 due to major debt and poor performance. Since then, many of the locations were sold or closed.
Meridian Restaurants Unlimited, which operated 100 Burger King restaurants in Minnesota, Kansas, and Nebraska, also filed for bankruptcy in March 2023.
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