All 144 locations remain open and continue
normal operations
FORT
LAUDERDALE, Fla., Sept. 11,
2024 /PRNewswire/ -- BurgerFi International, Inc.
(NASDAQ: BFI, BFIIW) ("BurgerFi" or the "Company"), owner of the
high-quality, casual dining chain Anthony's Coal Fired Pizza &
Wings ("Anthony's") and one of the nation's leading fast-casual
"better burger" dining concepts, BurgerFi, announced today that it
has filed voluntary petitions for reorganization under Chapter 11
of the U.S. Bankruptcy Code in order to preserve the value of its
brands for all stakeholders.
All 144 locations of the Company's two brands throughout
the United States, including in
Puerto Rico, and in Saudi Arabia, (both corporate-owned and
franchised) will continue normal, uninterrupted operations. The
Chapter 11 filing by the Company includes only the 67
corporate-owned locations of both brands. Franchisee-owned
locations of BurgerFi and Anthony's Coal Fired Pizza & Wings
are excluded from the bankruptcy proceedings.
"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 USA Today's Great American Bites, "Top 3 Best
Major Pizza Chain" by Mashed in 2021, "The Absolute Best Wings in
the U.S." by Mashed in 2022, and named in "America's Favorite
Restaurant Chains of 2022" by Newsweek.
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 100%
American Angus Beef with no
steroids, antibiotics, growth hormones, chemicals or additives.
BurgerFi's menu also includes high-quality Wagyu Beef Blend
Burgers, All-Natural Chicken offerings, Hand-Cut Sides, and Frozen
Custard Shakes. BurgerFi was named "The Very Best Burger" at the
2023 edition of the nationally acclaimed SOBE Wine and Food
Festival and "Best Fast Food Burger" in USA Today's 10Best 2023
Readers' Choice Awards for its BBQ Rodeo Burger, "Best Fast Casual
Restaurant" in USA Today's 10Best 2023 Readers' Choice Awards for
the third consecutive year, QSR Magazine's Breakout Brand of 2020
and Fast Casual's 2021 #1 Brand of the Year. In 2021, Consumer
Reports awarded BurgerFi an "A Grade Angus Beef" rating for the
third consecutive year. To learn more about BurgerFi or to find a
full list of locations, please visit www.burgerfi.com. BurgerFi® is
a Registered Trademark of BurgerFi IP, LLC, a wholly-owned
subsidiary of BurgerFi.
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 U.S. Securities and Exchange Commission on
April 10, 2024, the Company's
Quarterly Report on Form 10-Q filed with the U.S. Securities and
Exchange Commission on May 16, 2024,
and in any other filings made by the Company with the U.S.
Securities and Exchange Commission, which are available at
www.sec.gov, and the risks attendant to the bankruptcy process,
including the Company's ability to obtain court approval from the
Court with respect to motions or other requests made to the Court
throughout the course of the Chapter 11 cases; the effects of the
Chapter 11 cases, including increased legal and other professional
costs; results of operations or business prospects; the effects of
the Chapter 11 cases on the interests of various constituents and
financial stakeholders; the length of time that the Company will
operate under Chapter 11 protection and the continued availability
of operating capital during the pendency of the Chapter 11 cases;
objections to the Company's restructuring process or other
pleadings filed that could protract the Chapter 11 cases; risks
associated with third-party motions in the Chapter 11 cases; Court
rulings in the Chapter 11 cases and the outcome of the Chapter 11
cases in general. All subsequent written and oral forward-looking
statements attributable to BurgerFi or persons acting on BurgerFi's
behalf are expressly qualified in their entirety by the cautionary
statements included in this press release. We undertake no
obligation to revise or publicly release the results of any
revision to these forward-looking statements, except as required by
law. Given these risks and uncertainties, readers are cautioned not
to place undue reliance on such forward-looking statements.
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SOURCE BurgerFi International