BurgerFi International has filed for Chapter 11 bankruptcy protection with the aim of continuing its restructuring process and securing additional capital.
According to chief restructuring officer Jeremy Rosenthal, the company has faced a drastic decline in post-pandemic consumer spending, sustained inflation, and increasing food and labor costs.
“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,” Rosenthal added.
The Chapter 11 filing only includes 67 corporate-owned locations of the company’s two brands – BurgerFi and Anthony’s Coal Fired Pizza & Wings, while franchisee-owned locations are excluded. All 144 locations of both brands in the US, Puerto Rico and Saudi Arabia will continue to operate as usual.
The board appointed Carl Bachmann as CEO and Rosenthal as chief restructuring officer in July last year to turn around the business.
Under the new leadership, the company began its strategy to address declining same-store sales, high employee turnover and a stale menu. Nineteen underperforming corporate-owned stores have been closed to align with current standards and reduce operating costs.
- Further reading: Red Lobster receives court approval of Chapter 11 exit plan
