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The list of restaurant chains filing for bankruptcy grew as BurgerFi International filed for Chapter 11 on Wednesday.
Through reorganization, the company aims to “preserve the value” of its BurgerFi and Anthony’s Coal Fired Pizza & Wings brands. Only its corporate-owned locations—17 BurgerFi and 50 Anthony’s—are included in the proceedings.
BurgerFi filed for Chapter 11 in the U.S. Bankruptcy Court in Delaware. Chief Restructuring Officer Jeremy Rosenthal cited the “drastic decline in post-pandemic consumer spending” along with rising inflation and increased food and labor costs as reasons for the filing. The company began a significant turnaround effort last year to improve its business.
CEO Carl Bachmann cited “legacy challenges” as a factor in the Chapter 11 filing, despite early signs of success in the company’s recent turnaround plan. BurgerFi estimated its assets between $50-$100 million and liabilities at $100-$500 million. Chief Restructuring Officer Jeremy Rosenthal expressed confidence that the bankruptcy process would help protect and grow the brands, continue the turnaround, and secure additional capital.
Restaurant chain BurgerFi files for Chapter 11 bankruptcy protection https://t.co/FxXoYyhpg7
— CNBC (@CNBC) September 11, 2024
Several restaurant chains, including Roti, Buca di Beppo, Rubio’s Coastal Grill, Red Lobster, and Tijuana Flats, have filed for Chapter 11 bankruptcy this year. Jonathan Carson, co-CEO of Stretto, told FOX Business that 17 operating companies and major franchisees in the restaurant industry have filed for Chapter 11 so far in 2024.
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