Popular Burger Chain In Michigan, Ohio & Indiana Files For Chapter 11 Bankruptcy

Another major chain in the U.S. which has locations in Michigan, Ohio, and Indiana is filing for Chapter 11 Bankruptcy, and the impacts could potentially mean trouble for these locations. The locations for the chain are in Northville, MI, Strongville & Cuyahoga Falls, OH, and Fort Wayne, IN.

As Yahoo Finance reported, the CRO gave a statement hitting on the struggles the company has faced in these tough economic times:

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The trouble comes for the chain BurgerFi:

The restaurant chain, which also owns pizza franchise Anthony’s Coal Fired Pizza, listed $50 million to $100 million in assets and $100 million to $500 million in debt, according to court papers. The procedure is a result of “a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs” Jeremy Rosenthal, BurgerFi’s chief restructuring officer who was hired in August, said in a Wednesday statement.

Other Restaurants Are Struggling Too

It isn't just BurgerFI that's struggling, as other restaurants this year have also filed for Chapter 11, including, Buca di Beppo, Red Lobster, Roti, Rubio’s Coastal Grill, and Tijuana Flats along with 12 other major businesses or franchises. This has been a tough year but it's not to say that a business can't come back.

It was announced by Red Lobster last week that they'll be able to soon exit bankruptcy, which shows that it's not over until it's over. It's also important to note that the bankruptcy was issued to "preserve the value of those restaurants for stakeholders," according to their release.