A major franchisee for Burger King restaurants in the Southeast has filed for bankruptcy.

Consolidated Burger Holdings of Destin, Florida filed for Chapter 11 bankruptcy on April 14, USA Today reported. Consolidated Burger Holdings operates 57 Burger King locations, including locations in Valdosta, Georgia and in Tallahassee, West Palm Beach and Naples, Florida. Four of its locations are in Walmart stores.

The filing follows contentious relationship between the franchisee and Burger King. The parent company filed suit against Consolidated Burger in 2024 and in February, declared the operator was in default of its franchise agreement, Restaurant Dive reported.

Consolidated plans to keep its Burger King restaurants open while it seeks to sell the company and its assets.

Consolidated Burger acquired its stores in 2018. For 2024, sales dropped almost $10 million from 2023 and losses grew to $12.5 million. In its filing, the company said it has about $77.9 million in assets and $77.9 million in liabilities.