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Burger King losses add up; franchisee TOMS King LLC files bankruptct

Franchisee files for bankruptcy protection in Akron

WARREN — One of the largest Burger King franchisees in the United States — one that operates several of the fast-food restaurants in the Mahoning Valley — has sought Chapter 11 bankruptcy protection in Akron.

TOMS King LLC, based in the Chicago suburb of Palantine, Ill., cites in a court filing the company has in the past several years, particularly as a result of the COVID-19 pandemic, lost a significant amount of foot traffic, which resulted in declining revenue.

Also contributing to the company’s financial state, rents, debt service and other liabilities haven’t proportionately gone down, while increased costs of shipping and food, difficulty finding labor and inflation “generally have exacerbated the debtors’ cash flow issues,” the filing states.

Some of the company’s restaurants have remained profitable, but others have not, resulting in TOMS King LLC’s inability to meet its financial obligations, the filing states.

Court records show TOMS King LLC has between 200 and 999 creditors, assets of $10 million to $50 million and liabilities of $50 million to $100 million.

The company’s website shows it operates restaurants in Cortland, Girard, Hubbard, Niles, Warren, Austintown, North Jackson, Poland, Youngstown, Middlefield, Salem and Columbiana. It formerly operated the downtown Warren Burger King that closed in November.

Starting at $3.85/week.

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