Burger King Franchisee Files Chapter 11 Bankruptcy
YOUNGSTOWN, Ohio – One of the largest franchisees of Burger King restaurants in North America has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Ohio.
Toms King LLC, based in Palatine, Ill., operates 90 restaurants in Illinois, Pennsylvania, Virginia and Ohio, including some in the Mahoning Valley, according to court papers filed this week.
The company reports it has between 200 and 999 creditors and between $10 million and $50 million in assets, according to the bankruptcy filing. It also claims liabilities between $50 million and $100 million.
The franchisee said the business had “suffered significantly from the loss of foot traffic, resulting in declining revenue,” particularly as a result of the COVID-19 pandemic, states the declaration of the company’s chief restructuring officer filed with the court. At the same time, the operations had to contend with recent cost increases in shipping and food, decreased availability of labor and general inflation, court filings say.
While some restaurants remain profitable, others have been operating at a loss, according to court papers.
In November, the company closed down several Burger King locations, including six in the Dayton area and one in Warren.
Copyright 2023 The Business Journal, Youngstown, Ohio.