BurgerFi, the nationwide fast-casual burger chain, introduced on August 16 that it’ll probably search chapter safety. The revelation got here from a assertion to the U.S. Securities and Alternate Fee (SEC), entered by BurgerFi Worldwide, proprietor of BurgerFi in addition to the Anthony’s Coal Fired Pizza chain. Citing vital difficulties, BurgerFi didn’t file its quarterly earnings with the SEC and famous deeper-than-expected monetary losses. They’re attributed to, amongst different components, a rise in output bills, a lower in earnings for operations, and accumulating prices tied to restructuring the corporate for long-term sustainability.

It is a large blow for BurgerFi, contemplating a number of best-burger awards as just lately as 2023, together with ones from the SOBE Wine and Meals Competition and two prestigious spots in USA At this time Readers’ Alternative Awards. It is sister chain, Anthony’s, has additionally racked up a number of prestigious awards, together with the Greatest Pizza Chain in America by USA At this time’s Nice American Bites.

Nonetheless, the proverbial “writing on the wall” has been slowly scripted over a number of years, beginning a minimum of with the $100 million buyout of the mother or father firm in 2020 that resulted in BurgerFi going public. Lawsuits by buyers adopted, as did struggling gross sales and retailer closures. Greater than 20 areas went out of enterprise between 2023 and April 2024. BurgerFi staged a comeback in mid-2023 with a brand new industry-veteran CEO, to no obvious avail. An un-filed quarterly earnings report is anticipated to point out web losses to the tune of $18.4 million, greater than thrice the web loss in the identical quarter in 2023.

BurgerFi Worldwide’s choice to contemplate chapter stems partially from the snowballing impact of failing to satisfy liquidity requirement on a $51.3 million mortgage after which being unable to satisfy a $4 million forbearance timeline provided by personal lenders. Given the circumstances, the bulk lender, TREW Capital Administration Non-public Credit score, is entitled to liquidate property and shutter operations. Alternatively, it may assume possession of the 2 restaurant chains.

Nonetheless, BurgerFi continues to search for different technique of salvaging the enterprise. Earlier makes an attempt have concerned outside-the-box pondering. Mere months in the past, in Could 2024, the corporate sought to rebrand itself, a minimum of quickly, by providing a extra various menu. In a seemingly abrupt departure from its very core, the chain with “burger” in its identify remodeled into ChickenFi and elevated the variety of hen objects. In the identical interval, it opened a Higher Burger Lab in New York Metropolis for menu innovation.

The makes an attempt to re-attain firm viability had been clearly inadequate, because it’s now roughly three months later, and chapter may be very a lot on the desk. Failing a significant turnaround, clients who take pleasure in entry to high-quality Angus beef, antibiotic-free all-natural hen, and fries minimize from contemporary potatoes, should wait till the monetary mud settles.