Another Popular Restaurant Chain Files For Bankruptcy

The parent company of the fast casual chain BurgerFi and Anthony's Coal Fire Pizza has filed for Chapter 11 bankruptcy , according to Nation's Restaurant News .

BurgerFi International Inc., which is based in Fort Lauderdale, Florida, is reported to be facing a debt of $500 million while having accumulated an estimated $50 million to $100 million in assets, according to the filing in the District of Delaware. The bankruptcy filing came less than a month after the company warned investors of the grim potential outcome in a 10-Q form filed with the U.S. Securities and Exchange Commission, claiming it was unable to report its latest quarterly earnings by the requisite deadline due to "significant adverse developments that occurred with respect to the company's business and liquidity" at the time.

BurgerFi recently received $2.5 million in funding from Trew Capital Management Private Credit 2 LLC, which required it to publicly share its intended use of the funding in order to settle its credit obligations. The company announced its began considering "strategic alternatives" as early as May and reached a forbearance agreement with existing creditors that was extended through July 31, according to Nation's Restaurant News .

BurgerFi was reported to be dealing with financial struggles since purchasing ownership of Anthony's Coal Fired Pizza in October 2021. The pizza chain's sales peaked in 2021, but have since been stagnant and on a downward trajectory.