The hamburger chain owned by Mark Wahlberg and his two brothers, Donnie and Paul, is reportedly in financial trouble.
The Wahlburgers location in Coney Island, Brooklyn shuttered this month because the restaurant did not pay its bills on time, Page Six reported on Saturday.
‘They have not been paying their bills,’ the gossip site quoted a source as saying.
‘They were on the verge of being locked out of Coney Island’ because the restaurant did not pay its rent, the source said.
The brothers are also reportedly having trouble launching its Times Square location also because of issues with rent money.
The hamburger chain owned by Mark Wahlberg (far right) and his two brothers, Donnie (far left) and Paul (center), is reportedly in financial trouble
The Wahlburgers location in Coney Island, Brooklyn (above) shuttered this month reportedly because the restaurant did not pay its bills on time
According to Page Six, Wahlburgers owes rent money to Thor Equities, the property owner of the 8,300-square-foot location on 8th Avenue in Manhattan.
‘They’re having trouble opening in Times Square. There’s some financial issue,’ a source told Page Six.
Wahlburgers released a statement to Page Six, saying: ‘Wahlburgers required its Coney Island restaurant to close due to a number of factors.
‘The same franchise group was in the process of developing a space in Times Square.
‘In both cases the franchisee was not operating in compliance with Wahlburgers business practices and brand standards.
‘Ownership is in the process of restructuring their business and bringing in new management to ensure that Wahlburgers Coney Island maintains the brand’s values and high criteria as both a restaurant and a workplace.
‘We are committed to the revitalization of Coney Island and reopening there, in addition to bringing Wahlburgers to Times Square, when we’re confident the leadership, staff, and resources are in place to uphold Wahlburgers’ commitment to excellence in all regards.
The brothers are also reportedly having trouble launching its Times Square location also because of issues with rent money. Donnie Wahlberg (third from left) and Paul Wahlberg (four from left) attend the VIP Preview Party at Wahlburgers Coney Island in 2015
‘We have no further comment.’
Wahlburgers has expanded to operate at least a dozen locations across the United States and Canada, with over two dozen more in the planning stages.
The company is run by the three brothers – two of whom, Mark and Donnie, are actors, and a third, Paul, who is a classically trained chef who has worked in the restaurant industry for 30 years.
Its CEO, Rick Vanzura, told Business Insider last year that the company plans to open 118 total locations within the next seven years.
Wahlburgers is looking to attract customers in the highly competitive better-burger market, which features popular chains like Shake Shack, Five Guys, and Smashburger.
Shake Shack, which operates 136 restaurants in various locations in North America, Europe, the Middle East, and Asia, is said to be worth an estimated $2.8billion, putting it in a league with established brand names like Wendy’s and Papa John’s.
The Wahlbergs have not been forthcoming about the restaurant’s financial state.
The story of Wahlburgers is the subject of a reality television series on A&E that has aired for eight seasons.