A Beloved Burger Chain’s Fall From Grace: Bankruptcy Hits

In 2024, several big chains and local favorites have had money problems in the food business. BurgerFi International Inc. is the most recent company to file for bankruptcy. BurgerFi, the company that owns both BurgerFi and Anthony’s Coal Fired Pizza & Wings, officially filed for Chapter 11 bankruptcy on September 11 because it still has money problems. Conversely, this filing only affects the 67 corporate-owned shops; franchise-owned stores will not be impacted.

During this time, all BurgerFi and Anthony’s restaurants, both company and licensed, will continue to operate as usual. Between the two names, there are 144 sites.

Situation With Money And Filing For Bankruptcy

In its bankruptcy case, BurgerFi says that its assets are worth between $50 million and $100 million, but its debts are considered worth between $100 million and $500 million. These numbers show that the company is struggling with its finances.

This bankruptcy occurred less than a month after the company had filed a 10-Q form with the SEC, in which it talked about “significant adverse developments” that had hurt its business and cash flow. Back then, the company gave hints that it might need to file for bankruptcy, and now that time has come.

New Leaders And Changes To The Strategy

At the beginning of 2023, BurgerFi changed its leadership to try to solve its continued problems. Carl Bachmann was CEO in July, and Christopher E. Jones was the Chief Financial Officer.

The new leadership team immediately started making a long-term plan to deal with important problems like falling same-store sales, high employee turnover, and an old menu.

Also, to make the company more profitable, they started a full review of how BurgerFi works. As part of their plan, they shut down 19 corporate-owned sites that weren’t doing well and cut costs.

BurgerFi has 93 stores, while Anthony’s Coal-Fired Pizza & Wings only has 51.

Changes Being Made To Save The Brands

Jeremy Rosenthal was hired by BurgerFi as its Chief Restructuring Officer last month to try to turn the company around. Now that the company is in Chapter 11 bankruptcy, Rosenthal is in charge of seeing it through.

Rosenthal recognized the problems the business has been having, such as a big drop in customer spending after the pandemic and rising prices for things like food and labor. Even with these problems, Rosenthal was sure that the company could get its operations back on track and ultimately improve.

“BurgerFi and Anthony’s Coal Fired Pizza & Wings are beloved brands, and we believe this structured process will allow us to protect and grow our brands,” Rosenthal said in a release.

He also stressed that the changes to the business that started almost a year ago would keep going even though the company was filing for bankruptcy. The company also wants to get more money as part of its restructuring attempts.

A Wider Trend Of Restaurants Going Out Of Business

BurgerFi’s collapse is not the only one that has happened. After the COVID-19 outbreak, restaurants have had a hard time with money. Costs are going up, and people are spending less at many stores.

Other restaurant chains have filed for bankruptcy in the past few weeks, such as the Mediterranean fast-casual Roti and the Italian restaurant chain Buca di Beppo.

The trend shows that even well-known names can be hurt by the current tough economic times in the food business.

What’s Next For BurgerFi

As BurgerFi proceeds with its bankruptcy process, the company will focus on stabilizing its finances, cutting costs, and improving its operations. The brand’s management is hopeful that the restructuring process will help it get back on its feet and improve in the future.

Even though the road ahead may be rough, BurgerFi’s company and franchise sites will stay open so customers can continue eating their favorite meals.

The restructuring manager and the company’s management team will work to ensure that the brand can once again thrive in a tough economic climate.

It looks like BurgerFi’s leaders are going to get the company through these tough times while maintaining the quality and experience that customers have come to expect from both BurgerFi and Anthony’s Coal Fired Pizza & Wings.

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