A restaurant with 102 locations is now considering a surprising bankruptcy, sparking mass closure fears according to reports.
In-N-Out rival BurgerFi is the latest food chain to consider mass closures and bankruptcy following poor post-Covid performance.
Like Red Lobster, the burger chain established in 2011 is consulting with experts on how to save the business which is hemorrhaging millions every month.
The news comes after the chain closed down 14 locations in 2023, followed by eight more earlier this year.
It is now left with 102 locations primarily in Maryland, Florida, North Carolina, New York, and Indiana.
The last time the chain’s operational footprint fell below 100 outlets was in 2018.
“We are committed to considering all potential strategic alternatives,” David Heidecorn, BurgerFi’s chairman, said in a statement on Thursday.
“While we are confident in the company’s current operating strategy, we are mindful of the company’s current liquidity challenges and are committed to exploring strategic alternatives that we believe would be in the best interests of the company and its stakeholders.”
Heidecorn replaced the chain’s former executive chairman Ophir Sternberg who resigned ahead of the evaluation process with Kroll Securities, BurgerFi’s financial advisers.
However, CEO Carl Bachmann and CFO Chris Jones will remain in their positions to provide stability during this challenging time.
Bachmann, who joined in July 2023, has continued to be positive about the future of the chain.
He is “more confident than ever that joining the company was the right decision,” Bachmann previously told investors, per QSR.
However, the chain has suffered from a series of financial issues this year, putting its future at risk, reports The-Sun.
In January, BurgerFi’s share prices plummeted so low that they fell below the $1 minimum for the stock exchange.
This saw the chain delisted from the Nasdaq and on Monday share prices were 32 cents.
BurgerFi has not been above the $1 per share minimum requirement since the beginning of December.
Three months after it was delisted, the chain failed to meet a loan repayment.
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Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
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