National Burger Chain Closes Restaurants, Might Be Filing For Bankruptcy

By Dave Basner

June 3, 2024

Photo: Getty Images

The long list of restaurant chains closing locations due to financial reasons keeps growing. Now, joining the likes of Red Lobster, Pizza Hut, Boston Market, TGI Fridays, Popeyes, Tijuana Flats, Cracker Barrel and Applebee's in shuttering locations, is national burger chain BurgerFi, and also like some other companies, they might also be filing for bankruptcy soon.

The chain which now has 120 locations across the country, closed eight restaurants recently as part of an effort to boost efficiency. The move follows 14 other locations closing last year. In an earnings call, the company explained, "We continue to evaluate our portfolio with a close look at cash flow and profitability."

The company has been struggling recently. In April, they defaulted on their credit agreement and in January, their stock was delisted from NASDAQ. In a press release, they stated that there are "several key initiatives with the goal of enhancing the company's prospects and ensuring stable management as the company goes through the process of reviewing strategic alternatives." However, they added that "there can be no assurance, however, that the strategic review process will result in an outcome favorable to the company or its stakeholders."

Essentially, the company may need to declare bankruptcy, and they've filed documents with the SEC explaining that bankruptcy is a possible outcome. As of now, there is no official word on if more closings or a bankruptcy are in BurgerFi's future.

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