BurgerFi, the US-based owner of the Anthony's Coal-Fired Pizza & Wings (Anthony’s) brand, has announced key initiatives to improve its prospects and ensure stable management as it reviews its strategic alternatives.
The restaurant company is dealing with a liquidity crunch and seeking temporary help from its lenders.
Its chairman, Ophir Sternberg, stepped down from all positions with the company on 23 May and was replaced by David Heidecorn, a member of the board of directors and a former partner of private equity firm L Catterton.
The leadership transition is part of a broader effort to steer the company through its current challenges.
BurgerFi has signed separate retention agreements with its CEO Carl Bachmann and chief financial officer Christopher E Jones, to ensure steady leadership as it proceeds with the strategic review process.
BurgerFi’s board of directors has established a special committee of directors and retained Kroll Securities as its sole financial advisor to support the review of strategic alternatives.
There is no assurance that the strategic review process will yield an outcome favourable to the company or its stakeholders.
BurgerFi has signed a forbearance agreement and seventeenth amendment to its existing credit facilities with its lender TREW Capital Management Private Credit.
The lender, along with L Catterton, has agreed to provide a loan of up to $4m to support the company during the strategic review phase.
David Heidecorn said: “We are committed to considering all potential strategic alternatives. While we are confident in the company's current operating strategy, we are mindful of [...] liquidity challenges and committed to exploring strategic alternatives that we believe would be in the best interests of the company and its stakeholders.”
In 2023 BurgerFi closed 14 restaurants, followed by a further eight in 2024, according to RestaurantBusiness. In April 2024, it defaulted on its credit agreement.
Same-store sales at the restaurant chain fell 13% in Q1 2024. It posted a loss of $30.7m last year and $6.5m in the first quarter.
BurgerFi International is the owner and franchisor of the two brands, BurgerFi and Anthony’s, and has a total of 162 locations.
