(TheIndependentStar.com) – In new evidence that the Biden-Harris administration has been shattering the US economy, BurgerFi International Inc., a notable chain recognized for its premium burgers, has declared Chapter 11 bankruptcy.
This announcement comes shortly after the company issued a cautionary note to investors in which it expressed “substantial doubt” about its future operational viability.
The declaration places BurgerFi among a growing roster of restaurant chains that have turned to bankruptcy proceedings as a strategy for recovery.
This trend includes well-known names such as Red Lobster and Buca di Beppo, highlighting the broader challenges faced by the restaurant sector.
In recent times, this industry has grappled with a decline in customer visits, compounded by the burden of high interest rates.
Originating in 2011, BurgerFi made its public debut in 2020 by merging with a special purpose acquisition company (SPAC).
This method of going public, known for its efficiency and minimal regulatory hurdles, gained temporary popularity as an alternative to traditional initial public offerings (IPOs).
Shortly after its public launch, BurgerFi expanded its portfolio by acquiring Anthony’s Coal Fired Pizza & Wings for a substantial sum of $156.6 million.
According to the latest bankruptcy documents, BurgerFi’s assets are valued between $50 million and $75 million, with outstanding debts ranging from $100 million to $500 million.
Financial reports for the quarter ending April 1 revealed that the company generated $42.9 million in revenue but suffered a net loss of $6.5 million.
The same report noted a significant 13% drop in same-store sales at its primary burger franchise.
As of the beginning of April, BurgerFi oversees 162 restaurants under its two brands, with approximately half being operated by franchisees.
In a similar development last week, discount retail giant Big Lots also declared bankruptcy, attributing its downfall to the economic pressures of spiking inflation on the watch of the Biden-Harris administration.
The chain sought Chapter 11 protection following a series of quarterly losses beginning in 2022, leading to the shuttering of many stores, WND reports.
As of May, Big Lots operated approximately 1,300 stores across the US, down from 1,425 at the start of 2023, as reported by The Wall Street Journal.
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