A famous burger restaurant chain in the United States of America or the US — Burgerfi, has filed for Chapter 11 Bankruptcy Protection. This is yet another chain in a long line of restaurant chains that are using it as a strategic move. Known for its premium burgers, BurgerFi follows other chains like Red Lobster and Buca di Beppo. Here are all of the other important details that you would need to know about this particular case.
USA Burger Chain BurgerFi Filed For Chapter 11 Bankruptcy
According to an article which was recently published by WION, BurgerFi was founded in 2011. In addition to operating the eponymous burger chain, it is also the parent company of Anthony’s Coal Fired Pizza & Wings.
As per a CNBC report cited in the WION article, the move is being taken to navigate tricky terrain amid declining customer traffic as well as a challenging economic landscape. If reports are to go by, BurgerFi’s assets are valued somewhere between $50 million and $75 million.
However, their liabilities range from $100 million to $500 million. Around April 1, the company reported a net loss of $6.5 million and they earned $42.9 million in revenue. In addition to this, same-store sales have gone down by 13 per cent which is a cause for concern.
What Does Chapter 11 Bankruptcy Protection Mean?
Chapter 11 Bankruptcy protection is different from being bankrupt. Going bankrupt would mean that you shut down your business and sell whatever assets you have left to the investors to whom you owe money. However, Chapter 11 Bankruptcy protection is when you can keep your business running while revamping your structure.
It allows you to reshape your business without debtors knocking on your door. So while BurgerFi is not out of business, it will have to reshape its structure to pay its investors over time. Corporations like these always get such infrastructural help however, not many humans can get such help.
Also Read: Zomato Customer Finds Mould In Burger Ordered From Burger King; Netizens Say, “This Is Nasty”
Have you ever heard of BurgerFi? Let us know in the comments section below!
Cover Image Credits: Wikimedia Commons
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