The number of restaurant chains that have filed for bankruptcy this year has increased, with BurgerFi International Inc. filing for Chapter 11 bankruptcy protection on Wednesday.
The company said it filed for Chapter 11 bankruptcy protection to preserve the value of its BurgerFi and Anthony's Coalfire Pizza & Wings brands “for all stakeholders.”
The company said the bankruptcy proceeding only affects its BurgerFi and Anthony's Coal-Fired Pizza & Wings restaurants, which it owns, with 17 and 50 locations, respectively.
BurgerFi's petition was filed in U.S. Bankruptcy Court for the District of Delaware.
Chief Restructuring Officer Jeremy Rosenthal said in a press release that the company was forced to file for Chapter 11 bankruptcy protection because of “a sharp decline in post-pandemic consumer spending amid continuing inflation and rising food and labor costs.”
BurgerFi launched a major turnaround effort last year in an effort to improve its business.
Chief Executive Officer Karl Bachmann said that even though the company was seeing “positive early signs of a restructuring plan that we launched less than a year ago,” “legacy challenges” made “today's filing necessary.”
BurgerFi, in its filing, estimates its assets at between $50 million and $100 million. Its liabilities are estimated at between $100 million and $500 million.
Rosenthal said the company is “confident” that the bankruptcy proceedings will “allow us to protect and grow our brand, continue the turnaround we began less than 12 months ago, and secure additional capital.”
Meanwhile, BurgerFi told customers that its company-owned and franchised restaurants — which operate 76 BurgerFi restaurants and one Anthony's — will continue to operate as usual.
Other restaurant chains that have filed for Chapter 11 bankruptcy this year include Roti, Buca di Beppo, Rubio's Coastal Grill, Red Lobster and Tijuana Flats.
Last week, Red Lobster received court approval to emerge from bankruptcy.
Jonathan Carson, co-CEO of bankruptcy services and technology company Stretto, told FOX Business last week that 17 restaurant operators and major franchisees have filed for Chapter 11 bankruptcy protection so far this year.
Breck Dumas contributed to this report.
