BurgerFi filed for Chapter 11 bankruptcy protection on Tuesday, following a recent warning to investors that it had “substantial doubt” about its ability to continue operating.
The fast-casual burger chain now joins a growing number of restaurant brands that have sought bankruptcy protection in an effort to restructure their businesses, including names like Red Lobster and Buca di Beppo.
Across the industry, restaurant chains, independent operators, and franchisees have been grappling with decreasing customer traffic and the impact of rising interest rates.
Founded in 2011, BurgerFi is known for offering premium burgers. The company went public in 2020 through a merger with a special purpose acquisition company (SPAC), an increasingly popular route at the time for businesses aiming to go public quickly and with less regulatory oversight.
Shortly after going public, BurgerFi acquired Anthony’s Coal Fired Pizza & Wings for $156.6 million.
According to its bankruptcy filing, BurgerFi holds assets valued between $50 million and $75 million, while its total debts are estimated to be between $100 million and $500 million.
In its financial report for the quarter ending April 1, the company posted revenue of $42.9 million and a net loss of $6.5 million. Additionally, same-store sales for the BurgerFi chain dropped by 13%.
As of April 1, BurgerFi operates 162 restaurants across its two brands, with about half of these locations being franchise-owned.
