BurgerFi International, Inc., the parent company of BurgerFi and Anthony’s Coal Fired Pizza & Wings, announced on Wednesday that it has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
All 144 locations across the United States, including Puerto Rico and Saudi Arabia—both corporate-owned and franchised—will continue normal operations without interruption. The Chapter 11 filing applies only to the 67 corporate-owned locations of both brands, excluding the franchisee-owned locations of BurgerFi and Anthony’s Coal Fired Pizza & Wings.
Locally, BurgerFi has locations in Gaithersburg (Rio Lakefront), North Bethesda (Pike & Rose), and Silver Spring (Downtown Silver Spring). The only Anthony’s Coal Fired Pizza & Wings location in the DC Metro area closed earlier this month amid bankruptcy rumors.
“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,” said 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.”
According to a company press release, Carl Bachmann was brought in as CEO and Christopher E. Jones as CFO in July 2023 to help strengthen the brands and operations. Confronting legacy operational challenges, they quickly formulated a strategic plan to address foundational issues such as declining same-store sales, high employee turnover, and an outdated menu. As part of their turnaround efforts, the company conducted a thorough evaluation of its operations.
As a result, 19 underperforming corporate-owned stores were closed, aligning the company’s footprint with current business standards and reducing operating costs. The company believes its current platform is now positioned for success.
“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,” said Carl Bachmann. “We are grateful for the continued support of our loyal customers, vendors, business partners, and our dedicated team members, who are the heart of the company.”
The company will file customary “first day” motions in the Chapter 11 cases to ensure the continuation of normal operations. Subject to court approval, these motions will allow for the timely payment of employee wages and benefits, the maintenance of customer programs, and other necessary relief. The expedited relief sought by the company includes allowing guests to continue using rewards and gift cards at participating locations.
