BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) which owns BurgerFi and casual dining chain Anthony's Coal Fired Pizza & Wings has filed for Chapter 11 bankruptcy protection as it tries to dig itself out of a financial hole.
The bankruptcy only affects its 67 corporate locations. A majority of its 144 locations are franchisee-owned. The company says it does not plan to close any locations during the reorganization. It previously closed 18 locations.
The company blames a "drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs."
"We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital," Chief Restructuring Officer Jeremy Rosenthal said.
The company says it has a strategic plan to address declining same-store sales, high employee turnover and what it calls a stale menu.
BurgerFi joins a list of recent restaurant bankruptcies including Red Lobster and Buca di Beppo.
It was founded in 2011 and went public in 2020.
