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BurgerFi filed for Chapter 11 bankruptcy protection on Tuesday, less than a month after it warned investors it had “substantial doubt” about its ability to operate.
The company joins the growing list of restaurant chains that have resorted to bankruptcy to turn around their businesses, from Red Lobster to Buca di Beppo. Broadly, the restaurant industry has seen chains, independents and franchisees alike struggle with declining traffic and high interest rates.
BurgerFi, known for its higher-quality burgers, was founded in 2011. It went public in 2020 through a deal with a special purpose acquisition company, which briefly became a popular alternative to a traditional IPO due to their speed and reduced regulatory scrutiny. Months later, the company bought Anthony’s Coal Fired Pizza & Wings for $156.6 million.
BurgerFi has assets of $50 million to $75 million and total debts of $100 million to $500 million, according to a bankruptcy filing.
For the quarter ended April 1, BurgerFi reported revenue of $42.9 million and a net loss of $6.5 million. Same-store sales at its namesake burger chain tumbled 13%.
Across its two brands, the company has 162 restaurants, roughly half of which are run by franchisees, as of April 1.