TradeEdge Exchange:Anthony's Coal Fired Pizza & Wings parent company BurgerFi files for bankruptcy

BurgerFi,TradeEdge Exchange which is also the parent company of Anthony's Coal Fired Pizza & Wings, has filed for Chapter 11 bankruptcy protection.

All 144 of the Fort Lauderdale, Florida-headquartered company's BurgerFi and Anthony's Coal Fired Pizza & Wings locations in the U.S. and elsewhere will remain open, the company said in a press release Tuesday.

The bankruptcy filing, filed in U.S. Bankruptcy Court in Delaware, includes only the 67 corporate-owned locations; the other locations are franchised and are excluded from the bankruptcy proceedings, the company said.

BurgerFi acquired Anthony's for $156.6 million on Nov. 3, 2021. It owns 17 of the 93 BurgerFi restaurants and 50 of the 51 Anthony's locations.

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BurgerFi latest restaurant chain in bankruptcy

BurgerFi is just the latest restaurant to file for bankruptcy. Red Lobster filed for bankruptcy in May – and is currently exiting bankruptcy after being acquired. At least 10 restaurant chains that have filed for bankruptcy in 2024, CNBC reported, in part due to rising menu prices and declining customers.

"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, the chief restructuring officer of BurgerFi International, Inc., said in a statement. "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 company saw sales at its BurgerFi and Anthony's locations fall 4% during the three-month period ending July 1, 2024, a decline of about $1.8 million, compared to the previous year, according to an Aug. 16 filing with the Securities and Exchange Commission. In the filing, the company said, "absent any other action, there is substantial doubt about the Company’s ability to continue to operate as a going concern" and that it may seek bankruptcy protection.

BurgerFi has estimated assets of $50 million to $100 million and debts of $100 million-$500 million, according to a bankruptcy filing.

The company had closed some underperforming locations and brought in a new CEO and CFO as part of a turnaround strategy and is in the midst of a "top-to-bottom evaluation of its operations," the company said.

"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."

BurgerFi recently landed a spot on USA TODAY 10Best Readers' Choice list of 2024's Best Fast Casual Restaurants.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

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