A BurgerFi location is seen on August 20, 2024 in Arlington, Virginia.
Tierney L. Cross | Getty Photos
BurgerFi filed for Chapter 11 chapter safety on Tuesday, lower than a month after it warned buyers it had “substantial doubt” about its capacity to function.
The corporate joins the rising listing of restaurant chains which have resorted to chapter to show round their companies, from Crimson Lobster to Buca di Beppo. Broadly, the restaurant business has seen chains, independents and franchisees alike battle with declining site visitors and excessive rates of interest.
BurgerFi, recognized for its higher-quality burgers, was based in 2011. It went public in 2020 via a cope with a particular function acquisition firm, which briefly turned a preferred different to a standard IPO resulting from their pace and decreased regulatory scrutiny. Months later, the corporate purchased Anthony’s Coal Fired Pizza & Wings for $156.6 million.
BurgerFi has property of $50 million to $75 million and whole money owed of $100 million to $500 million, in response to a chapter submitting.
For the quarter ended April 1, BurgerFi reported income of $42.9 million and a internet lack of $6.5 million. Identical-store gross sales at its namesake burger chain tumbled 13%.
Throughout its two manufacturers, the corporate has 162 eating places, roughly half of that are run by franchisees, as of April 1.
