Consolidated Burger Holdings, LLC's chapter 11 cases were dismissed effective August 18, 2026, according to the debtors' notice filed August 24. The notice states that the required distributions and other conditions to dismissal had been satisfied following the court's July 31 dismissal order. Dismissal effective-date notice, pp. 1–2
The Burger King franchisee entered bankruptcy operating 57 restaurants across Florida and southern Georgia. Its exit followed asset sales to four purchasers in June 2025 and a wind-down that provided for distributions to unsecured creditors. In seeking dismissal, the debtors said they no longer operated a business and lacked sufficient funds to pursue a liquidating plan. First-day declaration, pp. 5–6; dismissal motion, pp. 2–5
U.S. Bankruptcy Court for the Northern District of Florida, Tallahassee Division
Case Number
25-40162 (jointly administered)
Petition Date
April 14, 2025
Case Snapshot
The debtor identities, venue and petition date are recorded in the dismissal motion, pp. 1–3. This account covers the case outcome documented in the August 24, 2026 notice.
Final distributions preceded dismissal
The court's July 31 order made dismissal conditional on a final order addressing counsel's final fee application, payment of outstanding allowed professional administrative expenses, and distributions to holders of allowed secured, administrative, priority unsecured and general unsecured claims. The August 24 notice reported that all conditions had been satisfied and identified August 18 as the effective date. Dismissal order, paragraphs 3–4; effective-date notice, pp. 1–2
The debtors' May 28 dismissal motion described the proposed distribution schedule as follows:
Claim category
Treatment described in the motion
Auxilior secured claim
$2,043,380 on account of its allowed secured claim
Allowed administrative expenses
Payment of all allowed claims, including Burger King deferred cure claims, and fees due the clerk and U.S. Trustee
Allowed general unsecured claims
Approximately $522,428 distributed pro rata
Distribution Schedule Presented with the Dismissal Motion
These amounts come from the dismissal motion, paragraph 15. The court authorized distributions under the motion's Exhibit B and required distributions to Auxilior and Burger King Company, LLC to follow the final financing order and the parties' agreement. The later effective-date notice confirms satisfaction of the distribution condition without itemizing final payments by creditor. Dismissal order, paragraph 3; effective-date notice, pp. 1–2
For distribution purposes, a creditor with duplicate claims against multiple debtors was entitled to a single distribution on a single allowed claim. The order expressly limited that grouping to distributions and preserved each debtor's separate legal existence. Dismissal order, paragraph 5
Four purchasers acquired the assets
The debtors reported that they consummated court-approved sales in June 2025 with Phoenix Holdings of South Florida, LLC; CKJ Burger, LLC; King Fisher Franchises, LLC; and Burger King Company LLC. Their dismissal motion identifies the respective sale orders as docket entries 270, 271, 272 and 300. CKJ Burger was therefore one of four purchasers in the asset disposition. Dismissal motion, p. 2
After the sales, the estates remained responsible for obligations under the purchase agreements, postpetition liabilities, collection of remaining assets and claims reconciliation. The debtors argued that continued administration would consume professional fees and U.S. Trustee fees without a funded path to a plan. They sought dismissal to complete their wind-down under state law. Dismissal motion, pp. 2, 4 and 7–8
Falling sales and franchise defaults drove the filing
At the petition date, the business comprised 53 stand-alone restaurants and four Walmart locations. Its geographic groups included 18 restaurants in Tallahassee and southern Georgia, 19 in South Florida and 20 in the Florida Panhandle. First-day declaration, pp. 5–6
Revenue fell from $76.6 million in fiscal 2023 to $67 million in fiscal 2024, while net operating losses increased from $6.3 million to $12.5 million. Chief restructuring officer Joseph J. Luzinski attributed the liquidity problems to reduced foot traffic, fixed rent and debt-service obligations, higher shipping and food costs, and labor availability. First-day declaration, pp. 9 and 14–15
The debtors also faced a franchise dispute. According to Luzinski, Burger King Company filed suit in January 2024, and the parties entered a confidential settlement in September 2024. Burger King Company declared alleged defaults under all franchise agreements on February 20, 2025, then extended forbearance through April 14, the petition date. First-day declaration, p. 8
Debt and financing shaped the sale process
The first-day declaration estimated total prepetition debt at $36.64 million, comprising $14.04 million of secured debt owed under the Auxilior facility and $21.60 million of unsecured debt. The unsecured total included subordinated borrowings, management-agreement debt and trade payables. First-day declaration, p. 10
With approximately $179,000 in unrestricted cash and cash equivalents at filing, the debtors sought access to $1.6 million in debtor-in-possession financing from Auxilior, together with cash collateral, to fund operations during a sale process. Those figures describe the requested financing and petition-date liquidity, rather than an amount actually drawn. The debtors later reported that the court entered its final financing order on May 9, 2025. First-day declaration, p. 15; dismissal motion, pp. 3–4
Sale orders and settlements survived the exit
The dismissal order preserved prior sale orders, the final financing order, settlements, releases and other court rulings. It also retained jurisdiction over disputes concerning implementation of its orders. Those provisions remain relevant to research into purchaser obligations and creditor treatment following dismissal. Dismissal order, paragraphs 7 and 15
Who was the claims agent? Omni Agent Solutions, Inc. served as claims and noticing agent. The dismissal order relieved Omni of that role effective on dismissal, subject to specified records-transfer and mail-forwarding duties. Dismissal order, paragraph 12
The debtors' final notice also reported that they had filed their final monthly operating reports and paid all fees due the U.S. Trustee. With the dismissal conditions satisfied, the cases reached their effective dismissal date on August 18, 2026. Effective-date notice, p. 2
Sources
Dismissal effective-date notice, pp. 1–2 /documents/ef8aca07-d995-46eb-8dd6-d414ef6d614c/
First-day declaration, pp. 5–6 /documents/a6910a27-e621-446c-a447-e2e962a2b7a6/
dismissal motion, pp. 2–5 /documents/e76add44-c0dc-4218-a3b7-e522c56d0ff2/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.