BurgerFi and Anthony"s Coal Fired Pizza file for bankruptcy protection

On September 11, BurgerFi announced its filing for Chapter 11 bankruptcy protection, joining several other companies in a similar situation this year. The decision was made to reorganize and preserve the value of its brands amid ongoing financial challenges. CEO Carl Bachmann noted that despite initial positive signs from a turnaround plan initiated less than a year ago, the company faced legacy issues that necessitated this filing. BurgerFi, which owns Anthony's Coal Fired Pizza & Wings, reported assets between $50 million and $100 million, with total debts ranging from $100 million to $500 million. The bankruptcy proceedings will only affect its 67 corporate-owned locations, while franchisee-owned locations will remain unaffected. The company operates a total of 144 restaurants, with about half being franchises. The restaurant chain has struggled with fluctuating profits and has been operating at a net loss for the past two years. Recently, Nasdaq issued deficiency notices to BurgerFi for failing to file its quarterly report on time and for not maintaining the required number of board members after three directors resigned. In response to these challenges, the company hired a chief restructuring officer to stabilize operations. Despite the difficulties, the new Chief Restructuring Officer, Jeremy Rosenthal, expressed confidence that the Chapter 11 process would help protect and grow the brands while continuing the operational turnaround initiated less than a year ago. The company aims to secure additional capital and improve its financial standing in the competitive restaurant industry.