Latest news with #Debtors'
Yahoo
18-04-2025
- Business
- Yahoo
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 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.
USA Today
16-04-2025
- Business
- USA Today
Burger King franchisee with 57 locations in Florida and Georgia files for bankruptcy
Burger King franchisee with 57 locations in Florida and Georgia files for bankruptcy Show Caption Hide Caption US corporate bankruptcies hit highest level since Great Recession The first three months of 2025 saw the highest number of companies filing for bankruptcy in the U.S. since 2010. Straight Arrow News A Burger King franchisee with more than four dozen restaurants across Florida and Georgia has filed for bankruptcy. Consolidated Burger Holdings of Destin, Florida, which operates 57 Burger King locations, filed for Chapter 11 bankruptcy on April 14 in the U.S. Bankruptcy Court for the Northern District of Florida, according to court documents. Consolidated Burger Holdings' 57 restaurants include locations in Valdosta, Georgia, as well as Florida restaurants in Tallahassee, West Palm Beach and Naples – four of its restaurants are within Walmart stores. The franchisee has faced financial struggles. "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 says in the filing. Sales have declined and losses have increased over the last two fiscal years, they state in court documents. Consolidated Burger had sales of $67 million and an operating loss of $12.5 million in fiscal year 2024; the previous year: $76.6 million in sales and a net operating loss of $6.3 million. "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," Consolidated Burger says in court documents. Is Consolidated Burger closing its Burger King locations? Consolidated Burger, which listed assets and liabilities each amounting to about $78 million, plans to continue operating its restaurants during the bankruptcy process, but is seeking to sell the company and its assets, the company says in the filing. Consolidated Burger had been seeking a buyer during the seven months prior to the bankruptcy filing. McDonald's: When are Snack Wraps coming back? Fast-food chain drops new clue. The bankruptcy filing was the largest among Burger King franchise operators in recent years, according to which covers the quick-service restaurant industry. Who is Burger King's parent company? In 2024, Burger King spent about $1 billion to acquire Carrols, its largest franchisee, as part of a brand turnaround, and has been remodeling some restaurants with a new "Sizzle" look including indoor-ordering kiosks and more comfortable seating, NBC News reported. Parent company Restaurant Brands has said it planned to spend about $2.2 billion in its "Reclaim the Flame" plan to revitalize its Burger King restaurants, CNBC reported. An expected 85% to 90% of the 7,000 Burger King restaurants in the U.S. will get the redesign by 2028, according to CNBC. In 2024, Restaurant Brands, which also owns Tim Hortons, Popeyes and Firehouse Subs, reported $8.4 billion in revenue, an increase of 19.7%. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day.
Yahoo
16-04-2025
- Business
- Yahoo
Burger King franchisee with 57 locations in Florida and Georgia files for bankruptcy
A Burger King franchisee with more than four dozen restaurants across Florida and Georgia has filed for bankruptcy. Consolidated Burger Holdings of Destin, Florida, which operates 57 Burger King locations, filed for Chapter 11 bankruptcy on April 14 in the U.S. Bankruptcy Court for the Northern District of Florida, according to court documents. Consolidated Burger Holdings' 57 restaurants include locations in Valdosta, Georgia, as well as Florida restaurants in Tallahassee, West Palm Beach and Naples – four of its restaurants are within Walmart stores. The franchisee has faced financial struggles. "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 says in the filing. Sales have declined and losses have increased over the last two fiscal years, they state in court documents. Consolidated Burger had sales of $67 million and an operating loss of $12.5 million in fiscal year 2024; the previous year: $76.6 million in sales and a net operating loss of $6.3 million. "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," Consolidated Burger says in court documents. Consolidated Burger, which listed assets and liabilities each amounting to about $78 million, plans to continue operating its restaurants during the bankruptcy process, but is seeking to sell the company and its assets, the company says in the filing. Consolidated Burger had been seeking a buyer during the seven months prior to the bankruptcy filing. McDonald's: When are Snack Wraps coming back? Fast-food chain drops new clue. The bankruptcy filing was the largest among Burger King franchise operators in recent years, according to which covers the quick-service restaurant industry. In 2024, Burger King spent about $1 billion to acquire Carrols, its largest franchisee, as part of a brand turnaround, and has been remodeling some restaurants with a new "Sizzle" look including indoor-ordering kiosks and more comfortable seating, NBC News reported. Parent company Restaurant Brands has said it planned to spend about $2.2 billion in its "Reclaim the Flame" plan to revitalize its Burger King restaurants, CNBC reported. An expected 85% to 90% of the 7,000 Burger King restaurants in the U.S. will get the redesign by 2028, according to CNBC. In 2024, Restaurant Brands, which also owns Tim Hortons, Popeyes and Firehouse Subs, reported $8.4 billion in revenue, an increase of 19.7%. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day. This article originally appeared on USA TODAY: Burger King franchisee with 57 locations files for bankruptcy Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Bar Louie closes more than a dozen restaurants, files for Chapter 11 bankruptcy protection
Restaurant chain Bar Louie is filing for Chapter 11 bankruptcy – again. The Addison, Texas-headquartered gastrobar chain filed for bankruptcy on Wednesday in U.S. Bankruptcy Court for the District of Delaware, citing "various financial and operational challenges," according to court documents. The bankruptcy filing comes after several Bar Louie restaurants across the U.S. were closed recently including locations in Detroit, Nashville and East Brunswick, New Jersey. In a press release announcing the bankruptcy, Bar Louie said the bankruptcy process "is not expected to impact the company's day-to-day operations. Prior to the filing, Bar Louie closed underperforming locations to enhance its financial stability." National Pita Day: Cava offers free pita chips Saturday: How to redeem the offer Founded in 1991 in Chicago, Illinois, Bar Louie operates 31 company-owned locations and has an additional 17 franchised locations across 19 states, according to its court filing. As part of the bankruptcy process, Bar Louie planned to close at least 13 corporate-owned locations. It lists 48 locations currently on its website. "Inflationary pressures have caused consumers, generally, to cut back on dining out. At the same time, menu prices have risen to keep pace with increased food, utility and labor costs," the company's chief administrative officer Leslie Crook wrote in the bankruptcy filing. "As a result, many of the Debtors' restaurants have underperformed, causing a drag on the Debtors' financial performance and management attention." Bar Louie had previously filed for bankruptcy in 2020 and was purchased by the current owners, BLH TopCo, as part of that process. There were more than 130 Bar Louie locations in 2018, prior to that bankruptcy filing, according to Nation's Restaurant News. In its bankruptcy filing, Bar Louie listed estimated assets of $1 million to $10 million, with estimated liabilities of $50 million to $100 million. Its largest creditor is US Foods, which is owed more than $1.8 million. Bar Louie is just the latest restaurant chain to file for bankruptcy, amid what it described in its filing as an environment of "increased costs of operation and mounting macroeconomic pressures." Earlier this month, On the Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy protection after closing dozens of restaurants in February. In recent months there's also been bankruptcy filings from TGI Fridays and Red Lobster. Follow Mike Snider on Threads, Bluesky and X: mikegsnider & @ & @mikesnider. What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day This article originally appeared on USA TODAY: Bar Louie closing 13 restaurants as chain files for bankruptcy Sign in to access your portfolio
Yahoo
19-03-2025
- Business
- Yahoo
Purdue Pharma asks bankruptcy judge to accept new settlement plan
Purdue Pharma has filed a new bankruptcy plan as part of a $7.4 billion settlement to resolve thousands of lawsuits over the company's alleged role in the opioid crisis, months after the Supreme Court blocked a prior deal. The bankrupt company announced Tuesday it had filed a Chapter 11 Plan of Reorganization in the U.S. Bankruptcy Court for the Southern District of New York. In June of last year, the Supreme Court blocked a settlement deal, finding that the Sackler family who previously controlled Purdue Pharma could not be released from liability under federal law, despite contributing $6 billion to the settlement. 'Following the 2024 Supreme Court ruling, we doubled down on our commitment to work with our creditors to design a new Plan that delivers unprecedented value to those affected by the opioid crisis. Today's filing is a major milestone in that effort,' Purdue Board Chair Steve Miller said in a statement. 'We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good,' Miller added. 'I sincerely thank our stakeholders for their dedication and collaboration, and I look forward to having the plan confirmed and consummated as quickly as possible.' In January, Purdue Pharma and the Sacklers agreed in principle to pay a $7.4 billion settlement to resolve the multitude of lawsuits, raising the settlement by an additional $1.4 billion. Tuesday's court filing expands on this plan. Purdue Pharma argued this reorganization is likely to succeed, writing, 'The Debtors' reorganization is plainly in the public interest and favored by a balancing of the harms. The Debtors' proposed plan will devote billions of dollars to public opioid abatement and creditor recoveries.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
