BurgerFi Chain Seeks Chapter 11 Bankruptcy for Financial Protection
BurgerFi, a popular burger chain known for its high-quality burgers, has filed for Chapter 11 bankruptcy protection. The company expressed doubts about its ability to continue operating just a month ago. This move puts BurgerFi among the many restaurant chains that have turned to bankruptcy in an effort to revitalize their business. Challenges such as declining traffic and high Interest rates have been affecting the restaurant industry as a whole, from independent eateries to franchise chains.
Established in 2011, BurgerFi went public in 2020 through a special purpose acquisition company deal. This method of going public was gaining popularity for its speed and reduced regulatory scrutiny. Shortly after, BurgerFi acquired Anthony’s Coal Fired Pizza & Wings for $156.6 million. However, the company’s financial situation has taken a hit, with assets totaling $50 million to $75 million and debts ranging from $100 million to $500 million, as reported in their bankruptcy filing.
In the first quarter ending April 1, BurgerFi recorded revenue of $42.9 million and a net loss of $6.5 million. Same-store sales at its flagship burger chain dropped by 13%. The company operates a total of 162 restaurants under its two brands, with approximately half of them being franchisee-run as of April 1.
SOURCE
Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.