BurgerFi’s Parent Company Faces Potential Bankruptcy Amid Financial Struggles
BurgerFi International, the parent company of the popular BurgerFi chain and Anthony’s Coal Fired Pizza, is grappling with significant financial challenges that could lead to a bankruptcy filing. In a recent federal securities filing, the company disclosed deepening financial losses and substantial doubts about its ability to continue operations.
For the quarter ending July 1, 2024, BurgerFi reported an anticipated net loss of $18.4 million, a sharp increase from the $6 million loss during the same period last year. The company attributes these losses to lower operating income, increased expenses, and restructuring costs.
The situation has grown increasingly dire, with BurgerFi defaulting on its credit agreement and facing the expiration of a forbearance period with lender TREW Capital Management Private Credit, which could potentially seize BurgerFi’s assets and take over ownership if the company is unable to find financial relief or sell assets to meet its obligations.
BurgerFi has taken steps to address these challenges, including closing underperforming locations—14 restaurants in fiscal 2023 and eight more in the first quarter of this year. Despite these efforts, the company’s liquidity position remains precarious.
BurgerFi currently operates 102 units, including 27 company-owned and 75 franchised locations, while Anthony’s has around 60 units. One BurgerFi location remains operational on Long Island, located at 6234 Jericho Turnpike in Commack.
Photo: Google Maps.
