(Bloomberg) -- US burger chain BurgerFi International, Inc., which once aimed at challenging industry giant Shake Shack, has filed for Chapter 11 bankruptcy protection on Wednesday in Delaware.
The restaurant chain, which also owns pizza franchise Anthony’s Coal Fired Pizza, listed $50 million to $100 million in assets and $100 million to $500 million in debt, according to court papers.
The procedure is a result of “a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs” Jeremy Rosenthal, BurgerFi’s chief restructuring officer who was hired in August, said in a Wednesday statement.
Established in Florida by Plaza Auto Mall founder John Rosatti, BurgerFi has grown to own 144 stores under the two brands, according to the statement. All locations will continue normal operations. Months before the bankruptcy, the brand had just opened a flagship store in New York’s Manhattan.
The bankruptcy procedure only includes 67 corporate-owned locations of both brands, according to the statement. The company will “continue the operational turnaround started less than 12 months ago and secure additional capital,” Rosenthal said.
The case is BurgerFi International, Inc., 24-12017, in the US Bankruptcy Court for the District of Delaware.
--With assistance from Steven Church.
(Updates with details from the company statement starting in third paragraph.)
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