BurgerFi International (NASDAQ:BFI), the parent company of BurgerFi and Anthony’s Coal Fired Pizza, acknowledged that it is undergoing “significant adverse developments” that could result in a bankruptcy filing and the shuttering of its eateries.
The 102-unit BurgerFi had 27 company-owned and 75 franchised units as of the close of the first quarter, while Anthony’s had roughly 60 units after starting a franchising endeavor last year.
Restaurant Business reported the company used a federal securities filing on Friday to announce it could not timely file its quarterly earnings, adding that it forecast a net loss of $18.4 million for the quarter ended July 1 versus the net loss of $6 million from one year ago. The company attributed its problems to lower operating income, higher expenses and restructuring costs.
In May, the company entered into a forbearance agreement with lender TREW Capital Management Private Credit and private-equity firm L Catterton, who agreed to loan the company another $4 million. In its filing, the company cited its ongoing problems coupled and an Emergency Protective Advance Agreement entered into with lenders last week when it admitted “there is substantial doubt about the company’s ability to continue to operate as a going concern.”
BurgerFi closed 14 restaurants during fiscal 2023 and another eight units in the first quarter this year.
