Seven of the region’s Burger Kings are slated for possible closure, as a result of the franchise owner’s financial problems.
Garliz Investments LLC asked the U.S. Bankruptcy Court for permission to close the restaurants, which it described as “underperformers” that drain resources from other operations. The Burger Kings targeted for closure are in Post Falls, Liberty Lake, Cheney, Spokane’s South Hill, Pullman, Clarkston and Leavenworth, Wash.
Garliz Investments filed for bankruptcy on Nov. 18. The Post Falls company employs 500 people at 25 Burger Kings in Washington, Idaho and Oregon.
Garliz Investments lists debts of $19.3 million and assets of $5.8 million in its bankruptcy filing. Manuel Garcia, managing member of the family-owned firm, said in court documents that he wants to continue running Garliz Investments while the company works out a plan to repay creditors.
A number of money-losing stores contributed to the company’s problems, Garcia said in court documents. Nationwide, Burger King’s share of the hamburger market also dropped from 19 percent to 15 percent in the last several years, causing many franchise owners to file for bankruptcy.
On Dec. 21, the court will consider Garcia’s request to close the seven Burger Kings.