FORT LAUDERDALE, FLA. — BurgerFi International (NASDAQ: BFI) has filed for voluntary Chapter 11 bankruptcy protection. The Fort Lauderdale-based company operates under two brands: BurgerFi and Anthony’s Coal Fired Pizza & Wings. The two entities have a total of 144 locations open across the United States, Puerto Rico and Saudi Arabia.
The filing pertains to 67 corporately owned locations operating under both the BurgerFi and Anthony’s banners. The remaining 77 franchisee-owned locations are excluded from the filing, with the company’s total portfolio expected to remain open and continue normal operations.
BurgerFi cited a drastic decline in post-pandemic consumer spending, sustained inflation and increasing food and labor costs as the key drivers in the decision to file for bankruptcy. The company joins a number of restaurants that have recently filed for bankruptcy protection, including Mediterranean fast-casual chain Roti, Italian dining chain Buca de Beppo and seafood chain Red Lobster.
“We need to stabilize the business in a structured process,” says Jeremy Rosenthal, who has been named chief restructuring officer for the company. “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.”
The company’s board brought in CEO Carl Bachmann and CFO Christopher Jones in July 2023 to help address a number of foundational issues, including declining same store sales, high employee turnover and a “stale” menu. As part of the turnaround efforts, the company conducted an evaluation of its operations, which resulted in the closure of 19 underperforming corporately owned stores.
BurgerFi will file “first day” motions to ensure normal operations during the restructuring. If these motions are approved by the court, they will enable BurgerFi to ensure the timely payment of employee wages and benefits.
Advisors to BurgerFi in the filing include Raines Feldman Littrell LLP and Force Ten Partners. Sitrick and Co. will act as strategic communications advisor to the company throughout the process.
BurgerFi was originally established in February 2011 with a focus on serving fresh food made with responsibly sourced ingredients in an eco-friendly environment. The company’s stock price closed at $0.14 per share on Wed., Sept. 11, down from $1.27 a year ago, a nearly 89 percent decline.
—Katie Sloan