BurgerFi filed for bankruptcy due to rising costs

BurgerFi International Inc., the parent company of BurgerFi and Anthony's Coal Fired Pizza & Wings, has filed for Chapter 11 bankruptcy in Delaware. The fast-casual restaurant chain, which has as much as $500 million in debt, cited skyrocketing operating costs as the main cause of its financial troubles.

BurgerFi has filed for bankruptcy: debts and financial problems

The bankruptcy filing comes about a month after the Florida-based company disclosed in a statement to the U.S. Securities and Exchange Commission (SEC) that it was facing significant financial difficulties. BurgerFi, which also owns Anthony's Coal Fired Pizza & Wings, reported sharp cost increases related to employee wages and rising chicken prices for its pizza and wings business.

On August 16, BurgerFi reported having only $4 million in cash reserves, raising doubts about its ability to sustain operations. Despite these challenges, the company expressed optimism that the bankruptcy process would provide an opportunity to restructure its debt and secure new capital.

Declaration of trust

BurgerFi, known for branding its burgers with its logo, said in a statement Wednesday that the restructuring will help the company get its operations back on track. Chief Restructuring Officer Jeremy Rosenthal highlighted the negative impact of the post-pandemic decline in consumer spending and ongoing inflation on both brands.