- BurgerFi
filed for bankruptcy protection, joining the growing list of restaurant
chains that have turned to Chapter 11 to turn around their businesses.
- The
company owns its namesake burger chain and Anthony’s Coal Fired Pizza
& Wings.
- BurgerFi
went public through a deal with a special purpose acquisition company in
2020.
BurgerFi filed
for Chapter 11 bankruptcy protection on Tuesday, less than a month after it
warned investors it had “substantial doubt” about its ability to operate.
The company joins the growing
list of restaurant chains that have resorted to bankruptcy to turn around
their businesses, from Red Lobster to Buca di Beppo. Broadly, the restaurant
industry has seen chains, independents and franchisees alike struggle with
declining traffic and high interest rates.
BurgerFi, known for its
higher-quality burgers, was founded in 2011. It went public in 2020 through a
deal with a special purpose acquisition company, which briefly became a popular
alternative to a traditional IPO due to their speed and reduced regulatory
scrutiny. Months later, the company bought Anthony’s Coal Fired Pizza &
Wings for $156.6 million.
BurgerFi has assets of $50 million
to $75 million and total debts of $100 million to $500 million, according to a
bankruptcy filing.
For the quarter ended April 1,
BurgerFi reported revenue of $42.9 million and a net loss of $6.5 million.
Same-store sales at its namesake burger chain tumbled 13%.
Across its two brands, the company
has 162 restaurants, roughly half of which are run by franchisees, as of April
1.
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