Subsidiaries of an Illinois-based Burger King franchisee, one of the largest in the brand’s U.S. system, reportedly have filed for Chapter 11 bankruptcy protection at units operating about 90 restaurants.
Bloomberg Law reported that Chapter 11 filings submitted early this week by TOMS King Holdings LLC’s operating subsidiaries included about $35.5 million in secured debt to Bank of America. Another $14 million of unsecured debt was held by vendors, landlords and Burger King Corp., according to filings.
The Chapter 11 filing was in the U.S. Bankruptcy Court for the Northern District of Ohio.
The suburban Chicago company said its business was impacted loss of business during the pandemic without decreases is rent, debt service and other costs.
Palatine, Ill.-based TOMS King Holdings was founded in 2012. The company in early 2022 said it have more than 130 Burger King Units in North America, including Illinois, Ohio, Pennsylvania, North Carolina and Virginia.
Toronto-based Restaurant Brands International Inc., franchisor of the Burger King, in September announced a $400 million plan to invest in its U.S. system.
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