Restaurant chain BurgerFi files for Chapter 11 bankruptcy protection

BurgerFi filed for Chapter 11 bankruptcy protection on Tuesday, following a recent warning to investors that it had “substantial doubt” about its ability to continue operating.

The company is the latest in a string of restaurant chains, including Red Lobster and Buca di Beppo, that have turned to bankruptcy as a way to restructure their businesses. The restaurant industry as a whole has faced challenges, with both chains and independent operators struggling due to decreasing customer traffic and rising interest rates.

Founded in 2011, BurgerFi is known for its premium burgers. It went public in 2020 through a special purpose acquisition company (SPAC), a method that gained popularity as a quicker, less regulated alternative to a traditional IPO. Shortly after, BurgerFi acquired Anthony’s Coal Fired Pizza & Wings for $156.6 million.

In its bankruptcy filing, the company reported assets between $50 million and $75 million, and debts ranging from $100 million to $500 million.

For the quarter ending April 1, BurgerFi posted $42.9 million in revenue but suffered a net loss of $6.5 million. Its namesake chain saw a 13% drop in same-store sales.

As of April 1, the company operated 162 restaurants across its two brands, with about half of them franchised.