BurgerFi hired Jeremy Rosenthal as chief restructuring officer on Aug. 14, the company said in a U.S. Securities and Exchange Commission filing this week.
Rosenthal has been a partner at Force 10 Partners since October 2018. His experience includes serving as CEO, CRO, independent director or trustee for companies in a variety of industries, per the filing. Prior to Force 10, he was a restructuring partner for international law firm Sidley Austin.
Last week, BurgerFi expressed substantial doubt over its ability to continue operating, given its liquidity position and forecast of weak operating results and cash flow. The chain said bankruptcy is a possibility.
As part of BurgerFi’s engagement agreement with Force 10, Rosenthal will help the company in various restructuring affairs, assist in legal counsel in executing restructuring plans and help with motions, responses or other court activity if needed.
Rosenthal will also “evaluate and develop restructuring plans and other strategic alternatives for maximizing the value of the Companies’ and their assets,” BurgerFi said in the filing.
This engagement provides further evidence that BurgerFi is considering bankruptcy, as chains like Rubio’s, Red Lobster and Buca di Beppo brought on restructuring experts prior to doing so this year. Force 10 was also involved in Rubio’s bankruptcy filings, per court documents.
BurgerFi went public in 2020 through a special purchase acquisition company, but has faced lackadaisical sales in recent quarters amid traffic declines, most recently reporting a 13% decline in same-store sales in Q1 2024. The company expects to report a 4% decline in same-store sales for the second quarter.
