Consumer
Burger King, Popeyes Franchisee Taps Debt Help as Cash Dries
The company has told investors its own costs have risen as inflation climbed.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
GPS Hospitality LLC, which operates networks of fast-food chains Burger King and Popeyes Louisiana Kitchen, is huddling with advisers about how to manage a shrinking cash pile amid revenue headwinds, according to people with knowledge of the discussions.
The Atlanta-based franchisee tapped law firm Paul Hastings and investment bank Houlihan Lokey Inc. for help managing its debt load and the risk of breaching some of its terms, said the people, who asked not to be identified discussing private conversations. A group of creditors to GPS is working with lawyers at Paul Weiss Rifkind Wharton & Garrison for advice on options and to protect their interests.