BurgerFi International Inc. hired Jeremy Rosenthal as its chief restructuring officer in mid-August, the company said in a U.S. Securities and Exchange Commission filing last week.
The Fort Lauderdale, Fla.-based burger chain, which also owns the Anthony’s Coal Fired Pizza brand, said Rosenthal, 48, had been a partner at advisory firm Force 10 Partners, since October 2018. His experience includes serving as CEO, CRO, and as independent director or trustee for companies in a variety of industries. Prior to Force 10, he was a restructuring partner for international law firm Sidley Austin LLP.
BurgerFi last week 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.
BurgerFi’s initiated a strategic review process and secured $2.5 million in emergency funding earlier in August. The company in an SEC 10-Q form noted that it could not report its most recently quarterly earnings by the given deadline because of “significant adverse developments that occurred with respect to the company’s business and liquidity.”
BurgerFi estimated that its sales for the quarter ended July 1 declined by 4%, or about $1.8 million, year-over-year. The drop was driven by negative same-store sales at both BurgerFi and Anthony’s.
BurgerFi also cited higher operating expenses compared to last year, mostly driven by higher wages, slower sales leverage on expenses, and higher chicken wing prices. The combination hit profits, and BurgerFi said it expected a net loss of $18.4 million for the quarter vs. a net loss of $6 million for the same quarter last year.
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