Restaurant chain BurgerFi might be taken over by one of its lenders as the company is reviewing strategic options for its business, which analysts believe include a potential Chapter 11 filing.

The Fort Lauderdale-based burger chain announced its “strategic review process” late last month after posting a loss of more than $6 million for the first quarter. The firm said there was no assurance that the process “will result in an outcome favorable to the company or its stakeholders”.

As analysts said a Chapter 11 filing is possible for the company, Restaurant Business Online reported last week that Jeff Crivello, founder of Trew Capital Management, might be planning a takeover of the business.

BurgerFi previously entered into a forbearance agreement with Trew that holds BurgerFi’s creditors at bay until at least July 31. Trew and L Catterton, another private equity firm, each agreed to lend the chain $2 million during the strategic review process.

In an interview with Tampa Bay Times, Crivello affirmed that his company is capable and willing to operate the chain “only if they are unable to repay the loan”.

“BurgerFi and Anthony’s are great brands and we have a high level of confidence that they will thrive in the future,” he added.

Founded in 2011, the restaurant chain is known for its high-quality, hormone-free burgers, hot dogs and fries. Along with sister company Anthony’s Coal-Fired Pizza & Wings, the business is owned by BurgerFi International, which operated a combined 162 restaurants as of April.

BurgerFi has struggled since going public in December 2020 and announcing its acquisition of Anthony’s the following October. The firm has posted net losses since the acquisition and closed 22 BurgerFi locations over the past two years.