Restaurant chain BurgerFi seeks Chapter 11 bankruptcy protection.
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BurgerFi has sought Chapter 11 bankruptcy protection, just weeks after expressing significant concerns regarding its operational viability. This move places the company among a growing number of dining establishments facing similar challenges, including well-known names like Red Lobster and Buca di Beppo. The restaurant sector is grappling with a decline in customer visits and rising interest rates, impacting both chains and independent operators.
Established in 2011, BurgerFi is recognized for its premium burgers. The company went public in 2020 via a special purpose acquisition company, a method that gained popularity for its efficiency and lighter regulatory requirements. Shortly after, BurgerFi acquired Anthony's Coal Fired Pizza & Wings for $156.6 million.
According to its bankruptcy documents, BurgerFi's assets are valued between $50 million and $75 million, while its liabilities range from $100 million to $500 million. For the quarter ending April 1, the company reported revenues of $42.9 million alongside a net loss of $6.5 million, with same-store sales for its flagship burger brand dropping by 13%.
As of April 1, BurgerFi operates a total of 162 locations, with approximately half managed by franchisees.
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