BurgerFi International, the parent company of Anthony’s Coal Fired Pizza & Wings and BurgerFi, has declared bankruptcy and filed a voluntary reorganisation under Chapter 11 of the US Bankruptcy Code.
The move seeks to preserve the value of its brands for all stakeholders.
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The company noted that its 144 locations across the US, including Puerto Rico and Saudi Arabia, will remain open and operate as usual.
The Chapter 11 proceedings will involve only the 67 corporate-owned locations of both brands, leaving franchisee-owned establishments of BurgerFi and Anthony’s Coal Fired Pizza & Wings unaffected.
In July 2023, the board appointed Carl Bachmann as CEO and Christopher E Jones as chief financial officer to address operational challenges and revitalise the brands.
Under the new leadership, BurgerFi International developed and implemented a strategic plan to tackle issues such as declining same-store sales, high employee turnover, and an outdated menu.
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By GlobalDataThe company has also conducted a comprehensive review of its operations, which is ongoing.
As part of its restructuring efforts, BurgerFi International has closed 19 underperforming corporate-owned stores, aligning its operations with current business standards and reducing operating costs.
The company believes its current platform is well-positioned for future success.
To facilitate normal operations during the reorganisation, BurgerFi International will file standard “first-day” motions in the Chapter 11 cases.
These motions, pending court approval, will ensure the continued payment of employee wages and benefits, the maintenance of customer programmes and other necessary relief.
The company seeks expedited relief to allow guests to keep using rewards and gift cards at participating locations.
BurgerFi International chief restructuring officer Jeremy Rosenthal said: “BurgerFi and Anthony’s Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labour costs, we need to stabilise the business in a structured process.
“We are confident that the process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital.”
In August 2024, BurgerFi opened its new Maryland location in Woodmore Commons.
