Major Burger Chain Files for Bankruptcy as Mass Closure Fears Brew

BurgerFi Files for Bankruptcy As Mass Closure Fears Brew

BurgerFi, a well-known American burger chain has filed for bankruptcy amid growing closures in the food industry.

Now the 162 locations owned by BurgerFi, including its Anthony’s Coal Fired Pizza restaurants, are all under risk of being shut down for good.

This comes after various other major chains filed for bankruptcy, including Rubio’s, Red Lobster, Roti, Buca di Beppo, World of Beer and Melt Bar & Grill, reports the Daily Mail. Americans are increasingly eating out less as prices for goods continually rise, resulting in companies having to face declining sales throughout the country, according to the outlet.

Many of these companies have seen better days. World of Beer Bar & Kitchen, for instance, was considered by many to be among the fastest-growing restaurant chains in the US back in 2013. 

BurgerFi’s stock has plummeted nearly 60 percent since going public in 2020, was selling for only 14 cents on Wednesday, per the report. The burger company is widely considered a rival to Shake Shack and Five Guys, and has 102 restaurant locations in total.

Suspicions about the company’s future success largely came about in May after it revealed that it was exploring “strategic alternatives” thanks to a lack of funds, per the Daily Mail.

BurgerFi affiliates have nevertheless predicted a comeback for the company, doing so in a press release put out Wednesday.

“BurgerFi and Anthony’s Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process,” explained Jeremy Rosenthal, Chief Restructuring Officer of BurgerFi International, Inc. “We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital.”

CEO Carl Bachmann, meanwhile, said that despite “the early positive indicators of the turnaround plan initiated less than a year ago, the legacy challenges facing the business necessitated today’s filing.”

He added that the company is “grateful for the continued support of our loyal customers, vendors, business partners and our dedicated team members, who are the heart of the company.”