57-unit Burger King franchisee files for Chapter 11 bankruptcy

2 months ago 21

GlobalData

Wed, Apr 16, 2025, 3:52 AM 2 min read

Consolidated Burger Holdings, a Burger King franchisee operating 57 locations crossed the US states of Florida and Georgia, has filed for Chapter 11 bankruptcy protection.

The Destin, Florida-based group, which oversees restaurants successful 3 geographical clusters, has reported assets and liabilities betwixt $50m and $100m.

The clusters comprise 18 restaurants successful Tallahassee and Southern Georgia, 19 successful South Florida and 20 successful the Florida Panhandle.

The franchisee's full indebtedness stands astatine $36.6m, including $14m successful secured loans and much than $21m successful unsecured obligations, arsenic reported by QSR Magazine.

With conscionable $179,000 successful unrestricted cash, Consolidated has secured a $1.6m debtor-in-possession financing to enactment its reorganisation efforts.

The institution aims to merchantability its assets done a court-supervised merchantability process.

Consolidated has cited respective manufacture challenges that person impacted its operations: a highly leveraged equilibrium sheet, decreased ft postulation owed to Covid-19 and accrued costs related to shipping, nutrient and labour.

These factors person exacerbated its fiscal strain, starring to a driblet successful gross and an operating nonaccomplishment of $12.5m successful 2024.

Despite efforts to revitalise the concern done extended remodelling since 2018, the franchisee has struggled to flooded the economical pressures of higher labour costs, ostentation and reduced lawsuit visits.

The company's attempts to marketplace its assets, engaging Peak Franchise Capital to scope retired to 235 imaginable buyers, failed to output a satisfactory sale.

Legal disputes with its franchisor, which day backmost to 2019, person added to its troubles.

Although a colony was reached successful September 2024, Burger King alleged defaults nether the franchise agreements arsenic precocious arsenic February 2025 but agreed to a impermanent forbearance until 14 April.

"57-unit Burger King franchisee files for Chapter 11 bankruptcy" was primitively created and published by Verdict Food Service, a GlobalData owned brand.

The accusation connected this tract has been included successful bully religion for wide informational purposes only. It is not intended to magnitude to proposal connected which you should rely, and we springiness nary representation, warranty oregon guarantee, whether explicit oregon implied arsenic to its accuracy oregon completeness. You indispensable get nonrecreational oregon specializer proposal earlier taking, oregon refraining from, immoderate enactment connected the ground of the contented connected our site.