the hamburger company that was a millionaire, but ended up declaring bankruptcy

the hamburger company that was a millionaire, but ended up declaring bankruptcy

The end has come for one of the chains that used to be one of the most successful in the United States and it declared bankruptcy.

One of the most successful fast food chains in the United States, which was founded in 1991 and in 2012 experienced one of its greatest growth moments, declared bankruptcy due to a problematic decline in profits and some years of sustained losses. that they could not continue to bear.

While it is true that selling hamburgers is one of the projects with the highest rates of success in the United States and around the world, some companies have not done as well as they expected. Although McDonalds continues to expand its borders around the world, and sell this product of possibilities to countless entrepreneurs, this particular chain suffered enormous difficulties.

Hwy 55 Burgers, Shakes & Fries

What is the famous bankrupt company

The signature Hwy 55 Burgers, Shakes & Frieswas very popular in the southern states of the American Union of North Carolina, South Carolina, Tennessee, Alabama and Georgia. He recently filed for bankruptcy and filed his petition with Chapter 11 of the United States Bankruptcy Court on the last day of 2024, citing financial problems that were a consequence of the past covid-19 pandemic.

It had 22 corporate locations, and by that date, 13 had already closed their doors. In addition, 71 franchises will permanently suspend work after the firm declared that it has $11 million in secured debt and another $5.8 million in unsecured debt, while listing between 1 and 10 million dollars in assets and between 10 and 50 millions of dollars in liabilities.

How long has the company had financial problems?

With the great advance of the firm’s franchise presence in shopping centers, what seemed like an irreversible expansion began. But the success could not last forever and the Covid 19 pandemic ended up bankrupting this company’s finances. And although it had revenues in 2023 of $24.4 million dollars, losses began to occur a year earlier, in a dynamic that has not been different to this day.

Furthermore, due to labor shortages, labor problems, inflation and a change in the way Americans dine out from home, the problems worsened and the company was unable to reconvert or reverse these growing losses that it was generating over time. of the years, declaring bankruptcy at the end of December 2024.

Source: Ambito

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