Franchise News

Burger Chain Burbs Burgers Says Goodbye as Bankruptcy Claims Its Grill

Mar 01, 2024 10:08 PM EST | By Jep Collins

(Photo : Unsplash/MelindaGimpel )

Burbs Burgers, a well-known burger spot in Seattle famous for its smash burgers, has shut down all five stores. The owner said the company had to close because it had run out of money and options after officially declaring bankruptcy.

For the first time since 2007, the Huxley Wallace Collective, a group known for its restaurants, finds itself without any open locations. This comes after the closure of Burbs Burgers, a chain that had become a favorite for many.

Josh Henderson, the owner, turned to Instagram on February 17, making a heartfelt appeal for investment to save the chain he started in 2020. Despite his efforts, Burbs Burgers couldn't overcome the financial challenges from the beginning.

Burbs Burgers Closure Marks End of an Era for Huxley Wallace Collective

Henderson has openly shared that starting the chain during the pandemic was like beginning with "anchors around its legs," a statement he made to the Seattle Times.

Henderson has made a public plea for help to save his business. "The reason I'm posting this video is to look for any possible solution, to explore every option, just to try to find any way to keep the business running," he said.

Henderson shared that despite earning over $3.7 million in 2023, the burger chain was on track to make even more this year, with projected revenues of $4.3 million. He believes in the potential of his business, calling it a "scalable business" with "great reviews."

He sees it as a "small business that's ready and poised for growth" despite its financial struggles.

In the three years following the outbreak of COVID-19, Burbs Burgers expanded by opening four new stores and received high customer praise. However, the chain could not escape the heavy debt burden carried by its owner, Henderson.

Adding to its troubles, the Montlake store had to shut down last September due to a King County Health Department closure order. Despite these setbacks, Henderson remained hopeful and declared Chapter 11 bankruptcy in November, aiming to keep the business growing.

Also Read: Chevys Fresh Mex in Emeryville Announces Final Day, Ending a 25-Year Legacy Near San Francisco

Henderson spoke to Eater Seattle about his efforts to attract investors or find a buyer for Burbs, hoping for financial backing or a complete chain sale. Unfortunately, he was unable to strike a deal. To garner interest, Henderson released a video on Instagram showcasing the business's financial health and strengths.

This was his final attempt to find someone willing to take on the challenge of buying the restaurants. Henderson admitted, "Trying to sell a business in bankruptcy is not appealing to most people. I couldn't make it happen."

Burbs Burgers' Journey: Growth Amid Challenges

(Photo : Unsplash/IlyaMashkov)

Burbs Burgers expanded to five locations, including Montlake, Pioneer Square, Ballard, Georgetown, and Bellevue, showcasing its ambition and growth in the competitive restaurant industry.

"The work, the building, the growth is what it is about for me," Henderson emailed KOMO News. He emphasized his dedication to development, whether in his business ventures or personal life, always striving to apply a constructive approach wherever possible.

Since making his mark in the dining scene in 2007, Henderson has owned about 20 restaurants. His portfolio includes well-known names like Westward, Great State Burger, and Hollywood Tavern, as highlighted on Burbs' website. However, he has had to close or sell these establishments.

Despite these challenges, Henderson remains hopeful. He is looking forward to the possibility of a new beginning for Burbs Burgers, potentially with a buyer from within his team, signaling his optimism for the future and belief in the strength of his workforce.

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