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The Biden and Harris administration’s economic policies strike again.
On Wednesday, popular fast-food restaurant BurgerFi filed for Chapter 11 Bankruptcy.
In a statement on Wednesday, BurgerFi International announced it filed Chapter 11 reorganization to “preserve the value of its BurgerFi and Anthony’s Coal Fired Pizza & Wings brands.”
Chief Restructuring Officer Jeremy Rosenthal shared that BurgerFi needed to file for bankruptcy due to a “drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs.”
Restaurant chain BurgerFi files for Chapter 11 bankruptcy protection https://t.co/FxXoYyhpg7
— CNBC (@CNBC) September 11, 2024
Restaurant chain BurgerFi files for Chapter 11 bankruptcy protection
— unusual_whales (@unusual_whales) September 11, 2024
Here’s what Fox Business reported:
The number of restaurant chains that have filed for bankruptcy this year grew on Wednesday after BurgerFi International filed for Chapter 11 protection.
The company said it filed for Chapter 11 reorganization to “preserve the value” of its BurgerFi and Anthony’s Coal Fired Pizza & Wings brands “for all stakeholders.”
Only its corporate-owned BurgerFi and Anthony’s Coal Fired Pizza & Wings restaurants are included in the bankruptcy proceedings, it said. There are 17 and 50 of those, respectively.
BurgerFi’s petition was filed in the U.S. Bankruptcy Court for the District of Delaware.
Chief Restructuring Officer Jeremy Rosenthal said the company’s need to file for Chapter 11 arose amid a “drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs,” according to a press release.
BurgerFi, seeking to improve its business, launched an extensive turnaround effort last year.
BurgerFi, owner of Anthony's Coal Fired Pizza & Wings and its namesake chain, is the latest restaurant operator to seek chapter 11, with pressures including the cost of labor and chicken wings https://t.co/cynmuyUSPJ
— WSJ Pro Bankruptcy (@WSJBankruptcy) September 11, 2024
Per CNBC:
BurgerFi filed for Chapter 11 bankruptcy protection on Tuesday, less than a month after it warned investors it had “substantial doubt” about its ability to operate.
The company joins the growing list of restaurant chains that have resorted to bankruptcy to turn around their businesses, from Red Lobster to Buca di Beppo. Broadly, the restaurant industry has seen chains, independents and franchisees alike struggle with declining traffic and high interest rates.
BurgerFi, known for its higher-quality burgers, was founded in 2011. It went public in 2020 through a deal with a special purpose acquisition company, which briefly became a popular alternative to a traditional IPO due to their speed and reduced regulatory scrutiny. Months later, the company bought Anthony’s Coal Fired Pizza & Wings for $156.6 million.
BurgerFi has assets of $50 million to $75 million and total debts of $100 million to $500 million, according to a bankruptcy filing.
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