Financing

Struggling BurgerFi hires a chief restructuring officer

In addition, three board members have resigned from the parent company of the BurgerFi and Anthony's Coal-Fired Pizza brands, indicating a possible bankruptcy is coming.
BurgerFi
BurgerFi company officials have expressed doubt that the business can continue as a going concern. | Photo courtesy of BurgerFi International.

In another indication of looming bankruptcy, BurgerFi International this week said it has hired a chief restructuring officer, who will manage the company’s planned reorganization.

Jeremy Rosenthal, a partner in Force Ten Partners LLC, was appointed by the board on Aug. 14 as CRO, according to a filing with the U.S. Securities and Exchange Commission (SEC).

As of Friday, the chain had not filed for bankruptcy, but the parent of both BurgerFi and Anthony’s Coal-Fired Pizza brands indicated that might be coming soon, citing deepening financial losses.

The company had already disclosed it has begun reviewing strategic alternatives and had defaulted on its loan. Company officials in SEC filings expressed doubt about the company’s ability to continue as a going concern, saying its senior lender could call in the debt.

That lender, TREW Capital Management, is led by former Famous Dave’s CEO Jeff Crivello, who earlier this year acquired the debt of the fast-casual chain Rubio’s. When that chain filed bankruptcy and was put up for auction, it was sold to TREW after no bidders came forward.

That could happen again.

Meanwhile, three members of BurgerFi’s board also resigned on Aug. 14, though the filing indicated the move did not reflect any disagreement with the company. Allison Greenfield, Vivian Lopez-Blanco and Gregory Mann left the board, in a move that was immediate.

Appointed to the board was David J. Gordon as an independent director, also effective immediately, who will be a nominee for a three-year term at the company’s 2027 annual meeting. Gordon’s title or experience was not disclosed.

The two remaining board members are chair David Heidecorn, a senior advisor to private-equity firm L Catterton, and Andrew Taub, a managing partner at L Catterton.

 

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