BurgerFi, the parent company of Anthony’s Coal Fired Pizza & Wings, has applied for Chapter 11 bankruptcy protection.

All 144 BurgerFi and Anthony’s locations across the U.S. and internationally will remain operational, according to a press release from the company on Tuesday.

The Chapter 11 filing was made in the U.S. Bankruptcy Court in Delaware, affecting only the 67 corporate-owned restaurants; franchised locations are not included in this filing.

BurgerFi purchased Anthony’s for $156.6 million on November 3, 2021. It currently owns 17 out of 93 BurgerFi outlets and 50 out of 51 Anthony’s locations.

BurgerFi Joins Other Restaurants in Bankruptcy

BurgerFi is among several restaurant chains filing for bankruptcy recently. Red Lobster initiated its bankruptcy process in May and is now on the path to recovery after being acquired. As of now, at least 10 restaurant brands have filed for bankruptcy in 2024, as per CNBC, largely due to increasing menu prices and a shrinking customer base.

“BurgerFi and Anthony’s Coal Fired Pizza & Wings are popular and vibrant brands. However, due to a significant drop in consumer spending after the pandemic, along with rising inflation and increased food and labor expenses, we are taking steps to stabilize the business,” stated Jeremy Rosenthal, the chief restructuring officer of BurgerFi International, Inc. “We believe this strategy will help us protect and expand our brands, continue our operational improvements from the last year, and draw in extra capital.”

Throughout the three-month period concluding on July 1, 2024, the company experienced a 4% decline in sales at its BurgerFi and Anthony’s outlets, totaling a drop of around $1.8 million compared to the previous year, as highlighted in an August 16 filing with the Securities and Exchange Commission. In this filing, the company noted that “without further action, there is considerable doubt regarding the Company’s ability to continue operating successfully” and indicated that bankruptcy protection may be sought.

BurgerFi reported estimated assets ranging from $50 million to $100 million and liabilities between $100 million and $500 million, according to its bankruptcy documentation.

The company has already shut down some underperforming outlets and has appointed new executive leadership as part of a strategy to recover and is currently reviewing its entire operational structure.

“Despite some positive early signs from the turnaround approach established less than a year ago, we faced issues that required this filing,” Carl Bachmann remarked. “We appreciate the steadfast support from our loyal customers, vendors, business partners, and our committed team members, who are the core of our organization.”

BurgerFi was recently featured in YSL News 10Best Readers’ Choice list for 2024’s Best Fast Casual Restaurants.

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