One of Burger King’s largest franchisees, Consolidated Burger Holdings, has shut down 57 locations throughout Georgia and Florida after filing for Chapter 11 bankruptcy on April 14.
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According to USA Today, the franchisee, which operates out of Destin, Florida, began having financial concerns during 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,” it wrote in a filing.
The company wasn’t able to rebound during the years that followed due to “recent increases in costs of shipping and food, decreased availability of labor, and inflation,” chief restructuring officer Joseph Luzinski said, per the New York Post.
57 Burger King Locations In Georgia And Florida Shut Down
Consolidated Burger Holdings’ sales and losses worsened over the past two fiscal years, which forced the bankruptcy and Burger King closures. In 2023, the franchisee reported sales of $76.6 million and an operating loss of $6.3 million. The following year, it dropped to $67 million in sales with an operating loss of $12.5 million.
Burger Kings in Tallahassee, West Palm Beach, and Naples, Florida, as well as multiple locations in Valdosta, Georgia, are among those that have closed.
The company owes nearly $37 million to creditors and is hoping to sell all its assets during a court-supervised process.
This story’s featured image is by almo Creative via Shutterstock.
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