Yet another burger fast food chain in the US is about to go under as Hwy 55 Burgers, Shakes & Fries files for Chapter 11 Bankruptcy.

The popular southern burger joint, with around 83 total locations in the south, is facing ruin. The parent company, The Little Mint Inc. cites financial struggles and labor shortages following the pandemic. They have been unable to get numbers back to where they should be.

Despite pulling in $24.4 million in 2023, it still took net losses that year and the previous. Due to this, the burger joint has declared Chapter 11 bankruptcy threatening its stores in North Carolina, South Carolina, Tennessee, Alabama, and Georgia. One new store, that opened in Tennessee recently, closed up shop after only one month.

Hwy 55 speculates that it has around $11 million in secured debt and $5.8million in unsecured debt. This will all come under administration for Hwy55, Burgers, Shakes & Fries.

What Bankruptcy Means For Hwy 55, Burgers, Shakes & Fries

This burger joint, applying for Chapter 11 bankruptcy, is just another in a spate of similar cases. Chapter 11 Bankruptcy doesn’t mean the end for staff, stores, and stocks. It is more like a call for help. It will take the company into administration, and give space for needed reshuffling.

When a company applies for this kind of bankruptcy, its debt payments go on hold, and restructuring gets underway. Usually, under the watchful eye of advisors, assets are sold off, business models are modified, and the company is made profitable again.

Once this has happened, the burger joint will try to pull itself from bankruptcy. With a new look and new working methods, it can try to become profitable once again. For the staff, stockholders, and fans of the food place, this means it may live to see another day.