The restaurant industry is facing a severe crisis, thanks to the double whammy of Bidenomics and the aftermath of COVID-19. This week, another chain contemplates Chapter 11 bankruptcy, highlighting the ongoing struggles. Yes, folks, another bites the dust under this administration’sadministration’s failed economic policies.
BurgerFi International has announced it’s likely to file for bankruptcy protection. The company operates Anthony’s Coal Coal-Fired Pizza & Wings across eight northeastern states and the BurgerFi chain along the Eastern Seaboard. This news is a significant blow with 59 Anthony’s locations and 122 BurgerFi spots.
Once upon a time, these “fast-casual” restaurants were seen as the future of dining, offering a classier experience than your typical fast-food joints like Burger King or McDonald’s. But these upscale eateries are teetering on the brink thanks to the COVID shutdowns and the economic freefall under Bidenomics.
On Monday, the company made it official, announcing several initiatives aimed at stabilizing management and reviewing strategic alternatives in a press release. This move comes after financial woes, including being delisted from the Nasdaq in January. Their stock was a dismal 32 cents per share on Monday, as reported by the Daily Mail.
The company acknowledged that it would need more than filing for Chapter 11 and didn’t want to solve its problems. It bluntly stated that there is no guarantee that the strategic review will lead to a positive outcome for the company or its stakeholders. In other words, don’t hold your breath, folks.
This bankruptcy news isn’t a shocker. BurgerFi defaulted on its credit obligations in April and was under forbearance until July 31. They’ve also secured a $2 million loan to navigate this reorganization, but whether that will be enough remains to be determined.
And let’s remember that BurgerFi isn’t alone in this mess. In May, Red Lobster announced it was filing for bankruptcy. TGI Fridays followed suit in Florida. Even Applebee’s is closing 35 locations this year. The restaurant industry is collapsing under Biden’sBiden’s economy, not just eateries. Joann Fabric Stores and Bed Bath & Beyond have also filed for bankruptcy, with the latter reporting $5.2 billion in debt against $4.4 billion in assets.
