Yet another chain restaurant is feeling the heat in America’s current economy. A Burger King franchisee running over 40 locations in Florida and Georgia just declared bankruptcy.
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Consolidated Burger Holdings, based in Destin, Florida, has filed for Chapter 11 bankruptcy, according to court filings obtained by USA Today. The company, which operates 57 Burger King locations, submitted its filing on April 14 in the U.S. Bankruptcy Court for the Northern District of Florida.
Consolidated Burger Holdings operates 57 restaurants, with locations spanning Valdosta, Georgia, and several cities in Florida, including Tallahassee, West Palm Beach, and Naples. Four of these restaurants are located inside Walmart stores.
“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 explained in the filing.
The Burger King Franchisee Reported Declining Sales Over the Past Two Years
Court documents reveal that Consolidated Burger has faced declining sales and growing losses over the past two fiscal years. In 2024, the company reported $67 million in sales alongside an operating loss of $12.5 million. This marked a significant drop from the previous year, which saw $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 added in court documents.
Consolidated Burger, reporting assets and liabilities of approximately $78 million each, reportedly intends to keep its restaurants operational throughout the bankruptcy proceedings. The filing states that the company is looking to sell both its business and assets. Consolidated Burger had already spent seven months trying to find a buyer before filing for bankruptcy.
The bankruptcy filing marks the largest by a Burger King franchise operator in recent years, per QSR.com, a leading publication covering the quick-service restaurant industry.