Posted on 11/10/2023 10:28:35 AM PST by george76
Premier Kings, a 172-unit Alabama and Georgia operator whose owner died in 2022, declared Chapter 11 bankruptcy protection, citing substantial operating losses.
Premier Kings, a 172-unit Burger King franchisee whose owner died in 2022, declared bankruptcy protection, saying that operating losses even after the company closed restaurants forced the issue.
It’s the third time this year that a major Burger King operator has taken such a step, while several others closed restaurants around the country in the aftermath of the chain’s sales and profit challenges.
In this case, Premier Kings’ Chapter 11 filing follows the untimely death of its owner, Patrick Sidhu, whose Popeyes stores were placed into bankruptcy earlier this year for the same reason.
The company put the restaurants up for sale and hired the investment banker Raymond James & Associates to market the restaurants. The company closed several restaurants to “avoid further losses” and stabilize the business to prepare a sale.
But those cost cutting measures didn’t work. The company said that it faced pressure from landlords, vendors and with secured lenders.
Premier Kings generated $223 million in sales in 2022 and had an operating loss of $27 million. Bankruptcy court documents also reported $134.5 million in assets and $123.1 million in liabilities.
The company has deals with a pair of “stalking horse” bidders vying for parts of the company totaling about $34 million. One is for $15.5 million with RRG of Jacksonville for 44 stores in the Savannah, Ga., and Jacksonville, Fla., regions. The other is for $18.5 million for the purchase of 31 stores in North Alabama with the Newell-Berg Alliance AL.
A stalking horse bid is used as an opening bid in an auction. There are at least 44 potential bidders for at least some of the restaurants.
Burger King struggled with weak sales coming out of the pandemic while costs for labor and food took off. Two large-scale operators, Meridian Restaurants and Toms King, filed for bankruptcy and were sold. In both cases, however, not all of the stores were sold and numerous locations were shut down.
The company has been steering many stores into the hands of smaller operators it believes are more capable of improving operations at the restaurants and generating stronger sales in the process.
Burger King earlier warned that it expected to spend the rest of the year working with franchisees to close underperforming stores. It also said that most of $10 million of bad debt expense it expects to record in the fourth quarter will come from Burger King U.S.
The company has shown stronger sales this year while traffic last quarter outperformed its competitors. Burger King is investing $400 million into marketing and remodels to lift sales and has focused intently on improving operations and franchisee profits. The company said that franchisee profitability is up in the “double digits” so far this year.
Similar experience in my early college years. The BK was about 1/2 mile from our apartment so several times a week we would trudge down there and get a Whopper, fries, and a drink for under $2 ... definitely good on the budget. Now the Whopper is lss than 4 inches across and one cannot get out of the place for less than $8.
The best burgers always come from Mom & Pop restaurants..................
Well played…
A lot of Burger Kings are old and nasty facilities in bad locations. Sticky floors, etc. They just closed two locations here in Jacksonville, FL. Newer fast casual restaurants like Chipotle and Panda Express just run rings around older burger fast food concepts like BK.
Combine with a nasty product and it spells doom.
BK no McD’s, and the drive thru is full open till closing...
Well, the size may have changed, but that shouldn’t affect the taste. They taste like feces anymore..
If you aren’t cooking my burger fresh after I order it, I don’t want it.
Tom’s King was abjectly worst run fast food establishments I ever ever walked into. They should have had their franchise license revoked long long ago if BK actually have any care about their brand
Their expected out come of the pandemic. These stores will most likely be bought by bill gates and franchised as BURGER BUGS, yes a roach in every bite.
Whopper with 🧀, every time!
Natural gas is odorless, but an additive called mercaptan is included to alert people of leaks. Mercaptan has a highly recognizable, sulfur-like, "rotten egg" odor used to help people detect a leak. If you do notice that "rotten egg" smell and suspect a natural gas leak, do not try to find the source of the leak yourself, but leave the building or area and call the 24-hour emergency Peoples number at 1-800-400-4271, or call your local emergency response number."
I rarely have gone there since the pandemic, when my local BK decided to just up and close the entire dining area and only keep the drive thru open. I took that as a message saying “we don’t need your business”.
Oh, no, I know the smell of natural gas very well. The smell in the BK was food smell; it just didn’t agree with me. I checked out a Taco Bell a couple of weeks ago, and I thought the same thing. I tried a beef Taco Salad because there is a Taco restaurant a half mile from my home and always looks busy. Take-out. It was so bad I wouldn’t even put it in the garbage disposal for fear it would stink up the whole house before I finished. It’s the seasonings, I guess. But to each his own.
I had a bud burger for the first time in ages a few years ago.
Right off the bat I realized it was not flame broiled I was tasting but liquid smoke or some other nasty chemical.
I’d post a picture of liquid smoke but I’m on my cellphone...
BK BURGER
stupid phone....
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Yes, something like liquid smoke is the culprit! Just fine for people who like it, of course.
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