BurgerFi International Files for Protection Under Chapter 11
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has filed for Chapter 11 bankruptcy protection to preserve its brands' value. The filing includes 67 corporate-owned locations of BurgerFi and Anthony's Coal Fired Pizza & Wings, while all 144 locations (corporate and franchised) will continue normal operations. The company cites post-pandemic consumer spending decline, inflation, and rising food and labor costs as reasons for the filing.
Key points:
- 19 underperforming corporate-owned stores closed
- New CEO and CFO implemented turnaround plan in July 2023
- Company seeking court approval for continued employee wages, benefits, and customer programs
- Rewards and gift cards to remain valid at participating locations
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ha fatto richiesta di protezione fallimentare ai sensi del Capitolo 11 per preservare il valore dei suoi marchi. La richiesta include 67 locali di proprietà aziendale di BurgerFi e Anthony's Coal Fired Pizza & Wings, mentre tutti i 144 locali (aziendali e in franchising) continueranno le operazioni normalmente. L'azienda cita il calo della spesa dei consumatori post-pandemia, l'inflazione e l'aumento dei costi di cibo e manodopera come motivi per la richiesta.
Punti chiave:
- Chiusura di 19 negozi di proprietà aziendale poco performanti
- Nuovo CEO e CFO hanno implementato un piano di ristrutturazione nel luglio 2023
- Azienda in cerca di approvazione del tribunale per la continuità degli stipendi dei dipendenti, dei benefici e dei programmi per i clienti
- I premi e le carte regalo rimarranno validi presso le località partecipanti
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ha presentado una solicitud de protección por bancarrota bajo el Capítulo 11 para preservar el valor de sus marcas. La solicitud incluye 67 ubicaciones de propiedad corporativa de BurgerFi y Anthony's Coal Fired Pizza & Wings, mientras que las 144 ubicaciones (corporativas y franquiciadas) continuarán sus operaciones normalmente. La compañía cita la disminución del gasto del consumidor tras la pandemia, la inflación y el aumento de los costos de alimentos y mano de obra como razones para la solicitud.
Puntos clave:
- Cierre de 19 tiendas de propiedad corporativa con bajo rendimiento
- Nuevo CEO y CFO implementaron un plan de reestructuración en julio de 2023
- La empresa busca aprobación judicial para continuar con los salarios, beneficios y programas para clientes
- Las recompensas y tarjetas de regalo seguirán siendo válidas en las ubicaciones participantes
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW)는 브랜드 가치를 보호하기 위해 제11장 파산 보호를 신청했습니다. 이 신청에는 BurgerFi와 Anthony's Coal Fired Pizza & Wings의 67개 기업 소유 매장이 포함되며, 모든 144개 매장(기업 및 프랜차이즈)은 정상적으로 운영을 계속합니다. 이 회사는 팬데믹 이후 소비자 지출 감소, 인플레이션, 증가하는 식품 및 인건비를 신청 이유로 인용하고 있습니다.
주요 사항:
- 19개 저조한 매장 폐쇄
- 새로운 CEO와 CFO가 2023년 7월에 전환 계획을 도입
- 회사가 직원의 임금, 복리후생 및 고객 프로그램을 유지하기 위해 법원 승인을 요청 중
- 리워드 및 기프트 카드는 참여 매장에서 유효 유지
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) a demandé une protection contre la faillite en vertu du Chapitre 11 pour préserver la valeur de ses marques. La demande comprend 67 emplacements détenus par l'entreprise de BurgerFi et d'Anthony's Coal Fired Pizza & Wings, tandis que les 144 emplacements (corporatifs et franchisés) continueront de fonctionner normalement. L'entreprise cite la baisse des dépenses des consommateurs après la pandémie, l'inflation et la hausse des coûts alimentaires et de la main-d'œuvre comme raisons de cette demande.
Points clés :
- Fermeture de 19 magasins sous-performants appartenant à l'entreprise
- Nouveau PDG et CFO ont mis en œuvre un plan de redressement en juillet 2023
- L'entreprise demande l'approbation du tribunal pour maintenir les salaires, les avantages et les programmes pour les clients
- Les récompenses et les cartes-cadeaux resteront valides dans les points de vente participants
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) hat einen Antrag auf Schutz nach Chapter 11 gestellt, um den Wert seiner Marken zu erhalten. Der Antrag umfasst 67 unternehmenseigene Standorte von BurgerFi und Anthony's Coal Fired Pizza & Wings, während alle 144 Standorte (unternehmerisch und franchisiert) den regulären Betrieb fortsetzen werden. Das Unternehmen nennt den Rückgang der Verbraucherausgaben nach der Pandemie, Inflation sowie steigende Lebensmittel- und Arbeitskosten als Gründe für den Antrag.
Wichtige Punkte:
- 19 wenig rentablere unternehmenseigene Geschäfte geschlossen
- Neuer CEO und CFO haben im Juli 2023 einen Umstrukturierungsplan umgesetzt
- Das Unternehmen beantragt die Genehmigung des Gerichts für die Fortführung von Mitarbeiterlöhnen, -leistungen und Kundenprogrammen
- Prämien und Geschenkkarten bleiben an teilnehmenden Standorten gültig
- All 144 locations (corporate and franchised) continue normal operations
- Implementation of strategic turnaround plan to address operational challenges
- Closure of 19 underperforming stores to reduce operating costs
- Seeking court approval to maintain employee wages, benefits, and customer programs
- Filing for Chapter 11 bankruptcy protection
- Drastic decline in post-pandemic consumer spending
- Sustained inflation and increasing food and labor costs
- Legacy operational challenges including declining same-store sales and high employee turnover
Insights
BurgerFi's Chapter 11 filing is a strategic move to address financial challenges while maintaining operations. This decision allows the company to restructure its debt and potentially emerge stronger. Key points:
- All 144 locations remain open, including franchises
- Only 67 corporate-owned locations are part of the bankruptcy proceedings
- Recent closure of 19 underperforming stores indicates proactive management
The company's ability to secure additional capital through this process will be important for its long-term viability. Investors should monitor the restructuring progress and any potential asset sales or new financing arrangements that may arise during this period.
BurgerFi's situation reflects broader industry challenges post-pandemic. The company cites declining consumer spending, inflation and rising food and labor costs as key factors. This aligns with trends affecting many restaurant chains. Positive aspects include:
- New management team brought in July 2023 to implement turnaround strategy
- Focus on addressing same-store sales decline and high employee turnover
- Menu refresh initiatives
The success of these efforts will be critical. Investors should watch for same-store sales metrics and employee retention rates in future reports as indicators of the turnaround's effectiveness. The company's ability to adapt to changing consumer preferences will be key to its post-bankruptcy performance.
All 144 locations remain open and continue normal operations
All 144 locations of the Company's two brands throughout
"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."
The Board brought in Carl Bachmann as chief executive officer and Christopher E. Jones, chief financial officer in July 2023 to turnaround and strengthen the brands and operations. Faced with legacy operational challenges, they quickly developed and implemented a strategic plan to address foundational issues including declining same store sales, high employee turnover and a stale menu. As part of the turnaround efforts, the Company initiated a top-to-bottom evaluation of its operations, which is continuing.
As a result, the Company has aligned its footprint with current business standards through the closure of 19 underperforming corporate-owned stores and reduced related operating costs. The Company's current platform is primed 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 be filing customary "first day" motions in the Chapter 11 cases, to ensure normal operations. These motions, subject to court approval, will enable the timely payment of employee wages and benefits, the continuation of customer programs and other relief. The expedited relief being sought by the Company includes permitting guests to continue to use rewards and gift cards at participating locations to enjoy the exceptional food and service we are proud to provide through BurgerFi and Anthony's Coal Fired Pizza & Wings.
Court filings and other documents related to the restructuring are available on a separate website administered by the Company's claims agent, Stretto, Inc. at cases.stretto.com/BFI. Stakeholders with questions can call (855) 492-7450 or (714) 881-5915 or email BurgerFiInquiries@stretto.com.
Proposed advisors to the Company are Raines Feldman Littrell LLP, Force Ten Partners, with Jeremy Rosenthal as the Company's Chief Restructuring Officer, and Sitrick And Company as strategic communications advisor to the Company.
About BurgerFi International (Nasdaq: BFI, BFIIW)
BurgerFi International, Inc. is a leading multi-brand restaurant company that develops, markets, and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi International, Inc. is the owner and franchisor of the two following brands with a combined 144 locations.
Anthony's. Anthony's is a premium pizza and wing brand with 51 restaurants (50 corporate-owned casual restaurant locations and one dual brand franchise location), as of September 10, 2024. Known for serving fresh, never frozen and quality ingredients, Anthony's is centered around a 900-degree coal-fired oven with menu offerings including "well-done" pizza, coal-fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. Anthony's was named "The Best Pizza Chain in America" by
BurgerFi. BurgerFi is among the nation's fast-casual better burger concepts with 93 BurgerFi restaurants (76 franchised and 17 corporate-owned) as of September 10, 2024. BurgerFi is chef-founded and committed to serving fresh, all-natural and quality food at all locations, online and via first-party and third-party deliveries. BurgerFi uses
Forward-Looking Statements
This press release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those risks and uncertainties described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed with the
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SOURCE BurgerFi International
FAQ
Why did BurgerFi International (BFIIW) file for Chapter 11 bankruptcy?
Will BurgerFi and Anthony's Coal Fired Pizza & Wings locations remain open during the bankruptcy proceedings?
How many BurgerFi International (BFIIW) stores are affected by the Chapter 11 filing?
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