BurgerFi files for Chapter 11 bankruptcy: Will it close more restaurant locations?
BurgerFi International, the parent company of Anthony’s Coal Fired Pizza & Wings and fast-casual “better burger” chain BurgerFi, has filed for Chapter 11 bankruptcy to address financial challenges and stabilize its business. The decision follows rising costs, declining consumer spending, and post-pandemic economic pressures, and comes less than a month after the company had warned investors of a potential bankruptcy in a filing with the U.S. Securities and Exchange Commission (SEC). The new filing reports assets valued between $50 million and $100 million, with estimated liabilities ranging from $100 million to $500 million, Chain Store Age reports. No disruptions for customers The filing is limited to the company’s 67 corporate-owned locations, excluding those that are franchise-owned. Importantly, all 144 locations will continue normal operations without interruption, BurgerFi says. This includes stores in the United States, Puerto Rico, and Saudi Arabia. The company emphasized in a statement that customers should expect no disruptions. All stores will remain open, and programs such as rewards and gift cards will continue as usual, pending court approval of initial motions related to the bankruptcy proceedings. “BurgerFi and Anthony’s Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process,” said Jeremy Rosenthal, chief restructuring officer, in the statement. “We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital.” BurgerFi’s leadership team, including CEO Carl Bachmann, was brought in last year to implement a turnaround plan aimed at improving operations, addressing declining sales, and reducing employee turnover. As part of this effort, the company closed 19 underperforming locations, a step intended to streamline operations and set the stage for long-term success. A number of fast-casual or family-style restaurant chains have filed for bankruptcy protection this year, including Red Lobster, Tijuana Flats, and Mediterranean brand Roti.
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BurgerFi International, the parent company of Anthony’s Coal Fired Pizza & Wings and fast-casual “better burger” chain BurgerFi, has filed for Chapter 11 bankruptcy to address financial challenges and stabilize its business.
The decision follows rising costs, declining consumer spending, and post-pandemic economic pressures, and comes less than a month after the company had warned investors of a potential bankruptcy in a filing with the U.S. Securities and Exchange Commission (SEC).
The new filing reports assets valued between $50 million and $100 million, with estimated liabilities ranging from $100 million to $500 million, Chain Store Age reports.
No disruptions for customers
The filing is limited to the company’s 67 corporate-owned locations, excluding those that are franchise-owned. Importantly, all 144 locations will continue normal operations without interruption, BurgerFi says. This includes stores in the United States, Puerto Rico, and Saudi Arabia.
The company emphasized in a statement that customers should expect no disruptions. All stores will remain open, and programs such as rewards and gift cards will continue as usual, pending court approval of initial motions related to the bankruptcy proceedings.
“BurgerFi and Anthony’s Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process,” said Jeremy Rosenthal, chief restructuring officer, in the statement. “We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital.”
BurgerFi’s leadership team, including CEO Carl Bachmann, was brought in last year to implement a turnaround plan aimed at improving operations, addressing declining sales, and reducing employee turnover. As part of this effort, the company closed 19 underperforming locations, a step intended to streamline operations and set the stage for long-term success.
A number of fast-casual or family-style restaurant chains have filed for bankruptcy protection this year, including Red Lobster, Tijuana Flats, and Mediterranean brand Roti.
