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Burger King franchisee files for Chapter 11 bankruptcy

Discussion in 'Issues Around the World' started by ethics, Dec 5, 2002.

  1. ethics

    ethics Pomp-Dumpster Staff Member

    Faced with debt from overexpansion and declining sales, Burger King's second-largest franchisee on Wednesday filed for bankruptcy.
    AmeriKing's move to seek Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., comes as the fast-food industry is stuck in a price war that threatens to destroy the financial viability of restaurant operations.
    ''Clearly the price pressure from McDonald's is what did it to them,'' said Carl Sibiliski, restaurant industry analyst with Morningstar. ``Burger King was teetering on the edge, and McDonald's $1 menu pushed the envelope.''


    Keep in mind, this doesn't mean BK is down and out, just one of the 2nd largest franchisee is.

    Full story.
     
  2. Techie2000

    Techie2000 The crowd would sing:

    Ouch. Is there any place we can go to find out if what Burger Kings are owned by this franchisee?
     
  3. Stiofan

    Stiofan Master Po

    Are you asking about the number of units owned? If so, it's in the story near the bottom.
     

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