Another Florida Based Food Chain Has Filed For Bankruptcy
Every time I hear about a business fling for bankruptcy all i can hear is Dj Khaled saying, “Another one.” Sadly you read the headline right, “Another Florida based food chain has filed for bankruptcy.” This is so sad, because I remember going to the Burgerfi ( Central Ave) right here in St. Petersburg until one day it just permanently closed. Well now we know why. After months of reporting financial distress, BurgerFi filed for Chapter 11 bankruptcy on Wednesday.
BurgerFi Has Filed For Chapter 11 Bankruptcy
BurgerFi has filed for Chapter 11 bankruptcy which will allow the company to solve its financial issues through reorganization. According to Cnn, all of BurgerFi’s corporate locations will operate normally. The locations that are Franchise owned are not apart of the bankruptcy filing. If you don’t recall, BurgerFi previously blamed there many store closures on the declining of food sales.
They also stated that food prices hurt there operating expenses, specifically the increased price of chicken wings. BurgerFi is the parent company of Anthony’s Coal Fired Pizza which is also included in the bankruptcy filing. In the second quarter of this year, BurgerFi loss $18.4M. Last year they only lost $6M in second quarter.
The company is starting to make changes and they have already hired a chief restructuring officer. Jeremy Rosenthal is his name and he released a statement saying: “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, 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.”
Hopefully they will find a solution so that no more jobs are loss. Im hoping things turn around fast.