BurgerFi was last seen on August 20, 2024 in Arlington, Virginia.
Tierney L. Cross | Getty Images
Burger Fay General Motors announced its filing for Chapter 11 bankruptcy protection on Tuesday, less than a month after warning investors that it had “substantial doubts” about its ability to operate.
The company joins a growing list of restaurant chains that have filed for bankruptcy to improve their businesses, from Red Lobster to Buca di Beppo. More broadly, the restaurant industry has seen a struggle among chains, independents and franchisees alike, as footfall declines and interest rates rise.
BurgerFi, known for its high-quality burgers, was founded in 2011. It went public in 2020 through a special purpose acquisition company deal, which briefly became a popular alternative to a traditional IPO because of its speed and low 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 debt of between $100 million and $500 million, according to the 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 the eponymous burger chain fell 13%.
Across its two brands, the company has 162 restaurants, about half of which are franchised, as of April 1.
