A BurgerFi location is seen on August 20, 2024 in Arlington, Virginia.
Tierney L. Cross | Getty Images
burger fi filed for Chapter 11 bankruptcy protection on Tuesday, less than a month after warning investors it had “substantial doubts” about its ability to operate.
The company joins a growing list of restaurant chains that have turned to bankruptcy to get back on their feet, from Red Lobster to Buca di Beppo. Broadly speaking, the restaurant industry has seen chains, independent restaurants and franchisees alike struggle with declining traffic and high interest rates.
BurgerFi, known for its higher-quality burgers, was founded in 2011. It went public in 2020 through a deal with a special purpose acquisition company, which briefly became a popular alternative to a traditional IPO due to its speed and lower regulatory scrutiny. Months later, the company bought Anthony's Coal Fired Pizza & Wings for $156.6 million.
BurgerFi has assets of between $50 million and $75 million and total debts of between $100 million and $500 million, according to a bankruptcy filing.
In the quarter ended April 1, BurgerFi reported revenue of $42.9 million and a net loss of $6.5 million. Same-store sales at its namesake burger chain fell 13%.
As of April 1, the company had 162 restaurants across its two brands, about half of which were franchised.
