Restaurant chain BurgerFi files for Chapter 11 bankruptcy

BurgerFi The company filed for Chapter 11 bankruptcy on Tuesday, less than a month after warning investors there were “substantial doubts” about its ability to continue operating.

The company joins a long list of restaurant chains that have had to file for bankruptcy to get their business back on track – from Red Lobster to Buca di Beppo. In general, the restaurant industry is struggling with declining customer numbers and high interest rates – both chains and independents and franchises.

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 its speed and less regulatory scrutiny. Months later, the company 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 loss of $6.5 million. Sales at the burger chain of the same name fell 13 percent.

With its two brands, the company has 162 restaurants, about half of which are operated by franchisees as of April 1.