Fast-casual burger chain BurgerFi filed for Chapter 11 bankruptcy on Wednesday after months of financial woes.
The Fort Lauderdale-based chain, also the parent company of Anthony’s Coal Fired Pizza & Wings, said in a press release this week that it filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code “to preserve the value of its brands for all stakeholders.”
Corporate-owned and franchised locations will continue operations as usual, and BurgerFi said Wednesday that the Chapter 11 filing only covers the 67 corporate-owned locations of both brands. Of the 144 total locations, 77 franchise-owned BurgerFi and Anthony’s Coal Fired Pizza & Wings locations are excluded from the bankruptcy proceedings.
BurgerFi has Montgomery County locations in Downtown Silver Spring, the Pike District, and Rio Lakefront. The Anthony’s location in Bethesda, the only one in the region, suddenly closed earlier this month.
The company acquired Anthony’s for $156.6 million in 2021.
BurgerFi estimates liabilities between $100 million and $500 million and, according to CNN, had just $4.4 million on hand as of August 14. The company’s board hired a new CEO and CFO last year and developed a strategic plan to address foundational issues, including declining same-store sales, high employee turnover, and a stale menu.
In August, the company named Jeremy Rosenthal as its Chief Restructuring Officer.
“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,” Rosenthal said. “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.”
Photo Courtesy of BurgerFi