The restaurant industry has seen a wave of bankruptcy filings throughout 2024, and BurgerFi International Inc., a once-popular fast-casual burger chain, has now joined this list. On September 11, 2024, BurgerFi, which also owns Anthony’s Coal Fired Pizza & Wings, filed for Chapter 11 bankruptcy due to significant financial difficulties.
This filing affects 67 corporate-owned locations across both brands, while franchise-owned restaurants remain unaffected and continue normal operations.
Key Details Of The Bankruptcy Filing
The company’s filing indicates a range of $50 million to $100 million in assets and an estimated $100 million to $500 million in liabilities. BurgerFi and Anthony’s corporate-owned locations will continue operations during the bankruptcy proceedings, with a goal of restructuring and stabilizing their financial health.
The filing follows an August 2024 report by BurgerFi that detailed liquidity concerns and an inability to meet earnings deadlines. This report hinted at potential bankruptcy, which has now become reality.
BurgerFi’s Efforts To Turn Around
BurgerFi has made several moves to combat declining sales and high operational costs. In 2023, Carl Bachmann was appointed CEO, and Christopher E. Jones became the company’s CFO.
They implemented strategic changes, including reducing employee turnover and refreshing the menu to address stale offerings. In addition, 19 underperforming locations were closed, saving on operational costs.
In 2024, the company hired Jeremy Rosenthal as Chief Restructuring Officer to guide the brand through this difficult phase. Rosenthal stated that inflation, coupled with increasing food and labor costs, significantly impacted the company’s profitability.
Despite these challenges, BurgerFi remains hopeful that the bankruptcy process will allow them to protect their brands and secure additional capital for future growth.
| Details | Information |
|---|---|
| Bankruptcy Filing Date | September 11, 2024 |
| Brands Affected | BurgerFi, Anthony’s Coal Fired Pizza & Wings |
| Locations Involved in Bankruptcy | 67 corporate-owned stores |
| Total Locations (Corporate and Franchised) | 144 locations |
| Assets Reported | $50 million – $100 million |
| Liabilities Reported | $100 million – $500 million |
| Actions Taken | Closed 19 underperforming stores, reduced operating costs |
The Future Of BurgerFi And Anthony’s
BurgerFi is one of several restaurant brands facing financial issues due to post-pandemic declines in consumer spending. As costs of food and labor rise and inflation continues to impact the restaurant industry, the company hopes to restructure and emerge from Chapter 11 bankruptcy with a more secure financial standing.
Conclusion:
In light of BurgerFi’s Chapter 11 bankruptcy filing, the future of the once-loved chain hangs in the balance. While its franchise locations remain operational, the company’s focus is on restructuring and overcoming financial hurdles.
With new leadership in place and plans to stabilize its operations, the chain is hopeful for a successful turnaround while continuing to serve its loyal customers.
FAQs
1. Which Locations Are Affected By The Bankruptcy?
Only corporate-owned locations (67 stores) are included in the bankruptcy. Franchise-owned stores continue to operate as usual.
2. Will Burgerfi Continue To Operate During The Bankruptcy?
Yes, all corporate-owned and franchise locations will continue to operate during the bankruptcy proceedings.
3. What Are Burgerfi’s Current Financial Liabilities?
BurgerFi has reported liabilities estimated between $100 million and $500 million.
4. What Is Burgerfi’s Turnaround Strategy?
The company has closed underperforming stores, cut operational costs, and appointed a Chief Restructuring Officer to guide the brand through the bankruptcy.
5. How Many Locations Does Burgerfi Currently Have?
BurgerFi operates 93 restaurants, while Anthony’s Coal Fired Pizza & Wings has 51 locations.
