BurgerFi Grapples with Potential Bankruptcy Amid Financial Struggles
Myrtle Beach – BurgerFi, a widely known burger chain with its lone South Carolina location found within Myrtle Beach, is confronting a potential bankruptcy decree amidst a significant dip in its revenue, as indicated in its recent SEC submission.
Considerable Third Quarter Loss
Located at 106 Old Sayebrook Parkway, BurgerFi is anticipated to record a whopping third quarter loss of $18.4 million, set against a meagre $4.4 million in revenues, per the recent Friday SEC dossier. In a comparable period in 2023, the Fort Lauderdale-headquartered chain witnessed losses amounting to $6 million.
Doubts Over Continued Operation
“Upon considering the Company’s liquidity status presently along with its current projections of functioning outcomes and cash streams possibly leading to bankruptcy filing, there arise substantial doubts about the Company’s potential to continue operation,” BurgerFi stated in its filing. “The Company further expects that, in the absence of appropriate relief from its premium lender and supplemental sufficient liquidity from potential liquidity providers or from asset sales, it may seek protection under the applicable bankruptcy laws,”
A Historic Struggle: Insights into BurgerFi’s Troubled Past
BurgerFi first uncovered its financial troubles this past May when its governing board engaged Kroll Securities as a consultant as part of their “evaluation of strategic alternatives”. The burger chain’s CEO, Carl Bachmann, stated in April that poor weather had a significant impact on the company’s profits.
BurgerFi’s financial struggles are particularly evident in coastal areas stretching from Massachusetts to Florida, where many of its establishments are located. Despite pervasive troubles, company leadership remains focused on a comeback.
“As we look to the future, we remain laser-focused on revenue growth and enhancing operational efficiencies to boost profitability. These efforts are grounded in the five key strategic priorities we implemented in July last year”, stated Bachmann.
Nevertheless, he acknowledged, “Achieving sales and margin improvements cannot happen overnight, but we are laying a solid foundation upon which to build.”
///HERE News Network
///Author: HERE News
