Dive Brief:
- A court has approved BurgerFi’s access to $3.5 million in debtor-in-possession financing from an affiliate of TREW Capital Management, the brand announced in a press release Tuesday.
- The funds give BurgerFi and Anthony’s Coal Fired Pizza and Wings the breathing room to operate their 144 stores while Chapter 11 bankruptcy proceedings continue.
- Continued operations could help BurgerFi avoid a vicious cycle of closing stores and hemorrhaging cash. The company closed a significant, underperforming fraction of its store base before filing for Chapter 11.
Dive Insight:
BurgerFi now has “the liquidity to stabilize its operations and work with its vendors and landlords to meet the high standards for the BurgerFi and Anthony's brands,” the company said. The court also approved the continuation of current cash management programs, employees benefits and customer programs.
Carl Bachmann, who has served as BurgerFi’s CEO since last year, said the company “has worked very hard to ensure that the transition into Chapter 11 would have no impact on our valued employees, customers and franchise partners.” Backed by its lenders, BurgerFi will propose a sale process and bidding procedures.
David Heidecorn, who was appointed board chair in May, resigned his board role. The company’s board now consists of two men: Michael Epstein and David Gordon. Both were appointed in August, concurrent with the departures of several prior board members, according to Securities and Exchange Commission filings.
