BurgerFi International Files For Protection Under Chapter 11; All 144 BurgerFi Locations To Remain Open; Will Be Filing Customary "First Day" Motions In Chapter 11 Cases, To Ensure Normal Operations; Initiates Top-To-Bottom Evaluation Of Operations; Aligned Footprint With Current Business Standards Through Closure Of 19 Underperforming Corporate-Owned Stores
Portfolio Pulse from Benzinga Newsdesk
BurgerFi International has filed for Chapter 11 bankruptcy protection, ensuring all 144 locations remain open. The company will file 'First Day' motions to maintain normal operations and will evaluate its operations, closing 19 underperforming stores.
September 11, 2024 | 3:35 pm
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BurgerFi International has filed for Chapter 11 bankruptcy protection, but all 144 locations will remain open. The company plans to file 'First Day' motions to ensure normal operations and will close 19 underperforming stores.
The filing for Chapter 11 indicates financial distress, which typically negatively impacts stock prices. However, the decision to keep all locations open and file 'First Day' motions may mitigate some negative effects. The closure of underperforming stores is a strategic move to align operations with business standards.
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