BurgerFi The company filed for Chapter 11 bankruptcy on Tuesday, lower than a month after warning investors there have been “substantial doubts” about its ability to proceed operating.
The company joins a protracted list of restaurant chains which have needed to file for bankruptcy to get their business back on target – from Red Lobster to Buca di Beppo. In general, the restaurant industry is battling declining customer numbers and high rates of interest – each chains and independents and franchises.
BurgerFi, known for its higher-quality burgers, was founded in 2011. It went public in 2020 through a take care of a special purpose acquisition company, which briefly became a preferred alternative to a standard IPO resulting from its speed and fewer regulatory scrutiny. Months later, the corporate bought Anthony's Coal Fired Pizza & Wings for $156.6 million.
According to a bankruptcy filing, BurgerFi has assets between $50 million and $75 million and total debts between $100 million and $500 million.
For the quarter ended April 1, BurgerFi reported revenue of $42.9 million and a net lack of $6.5 million. Sales on the burger chain of the identical name fell 13 percent.
With its two brands, the corporate has 162 restaurants, about half of that are operated by franchisees as of April 1.
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