Consolidated Burger Holdings, a significant Burger King franchisee, filed for Chapter 11 bankruptcy protection, citing soaring labor costs and inflation as critical factors. The company owes nearly $37 million to almost 1,000 creditors and is trying to sell its assets as it grapples with significant revenue drops and operational losses. In its latest fiscal year, it reported a net operating loss of $12.5 million and a further $6.3 million loss, highlighting the ongoing struggles faced by fast-food chains in the post-COVID landscape.
"Recent increases in costs of shipping and food, decreased availability of labor and inflation worsened issues for the franchisee," said Joseph Luzinski, the company's chief restructuring officer.
"The firm owes $36.64 million to less than 1,000 creditors after operating some stores at a loss," the bankruptcy documents said.
Collection
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