BurgerFi International Inc., the parent company of BurgerFi and Anthony’s Coal Fired Pizza & Wings, has filed for Chapter 11 bankruptcy protection in Delaware. The fast-casual restaurant chain, which listed up to $500 million in debt, cited skyrocketing operational costs as a major factor in its financial struggles.
BurgerFi Filed for Bankruptcy : Debt and Financial Woes
The bankruptcy filing comes about a month after the Florida-based company disclosed in a U.S. Securities and Exchange Commission (SEC) statement that it was facing significant financial difficulties. BurgerFi, which also owns Anthony’s Coal Fired Pizza & Wings, reported sharp increases in costs related to employee wages and the rising price of chicken for its pizza and wings business.
As of August 16, BurgerFi stated it had only $4 million in cash reserves, raising doubts about its ability to remain operational. Despite these challenges, the company expressed optimism that the bankruptcy process would provide an opportunity to restructure its debt and secure new capital.
Statement of Confidence
BurgerFi, known for branding its burgers with its logo, said in a Wednesday statement that the restructuring would help the company turn around its operations. Chief Restructuring Officer Jeremy Rosenthal highlighted the negative impact of post-pandemic consumer spending declines and persistent inflation on both brands.
