BurgerFi has filed for bankruptcy, a move long anticipated after dwindling sales and traffic, store closures, and a previously announced search for strategic alternatives.

The fast casual, which also owns casual-dining concept Anthony’s Coal Fired Pizza & Wings, filed the documents in a U.S. District Court in Delaware. BurgerFi listed between $50 million and $100 million in assets and $100 million to $500 million in debt.

The parent company operates 144 locations across the two concepts, but only the 67 corporate-owned units are impacted. Franchisee-owned locations of BurgerFi and Anthony’s are excluded from the bankruptcy proceedings.

Nineteen underperforming corporate-owned stores closed leading up to the bankruptcy (10 BurgerFi stores and nine Anthony’s stores).

BurgerFi has 93 stores nationwide (76 franchised and 17 corporate), which is its lowest restaurant count since well before the pandemic. It’s a decrease from the 102-unit total (75 franchised and 27 corporate) at the end of Q1.

Anthony’s has 51 restaurants (50 corporate-owned casual restaurant locations and one dual-brand franchise location with BurgerFi). That’s a decrease from 60 locations at the end of Q1.

“Despite the early positive indicators of the turnaround plan initiated less than a year ago, the legacy challenges facing the business necessitated today’s filing,” CEO Carl Bachmann said in a statement. “We are grateful for the continued support of our loyal customers, vendors, business partners and our dedicated team members, who are the heart of the company.”

The company’s business has been faltering over the past few years. BurgerFi anticipates a 4 percent drop in restaurant sales during the second quarter year-over-year, fueled by lower same-store sales and closure of underperforming corporately owned locations. It also expects a net loss of $18.4 million, compared to $6 million a year ago, and a 5-percentage-point increase in restaurant-level operating expenses, primarily because of higher wages and lower sales leverage. It reported cash and cash equivalents of $4.4 million as of July 1.

The burger chain warned in August that bankruptcy may be the next step. BurgerFi shared that because it defaulted on its credit agreement with TREW Capital Management and the forbearance period is over, TREW could demand immediate repayment of the debt. If BurgerFi can’t pay, TREW could take control of or sell the company’s assets to recover the money owed. BurgerFi went on to say that if it couldn’t obtain financial relief and additional liquidity, it would have to seek protection under bankruptcy.

The brand also hired Jeremy Rosenthal as chief restructuring officer, a move that typically comes ahead of a bankruptcy proceeding. He is a partner at Force Ten Partners and has served as chief executive officer, chief restructuring officer, independent director, or trustee for companies in a variety of industries, according to an SEC filing.

“BurgerFi and Anthony’s Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process,” Rosenthal said in a statement. “We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital.”

BurgerFi revealed at the end of May that it was exploring strategic alternatives to move the business forward. The chain said there are no assurances that the strategic review process will result in an outcome favorable to the company or shareholders.

As part of the changes, executive chairman Ophir Sternberg stepped down and was succeeded by board member David Heidecorn, a senior adviser and former partner at L Catterton. The private equity firm has been one of BurgerFi’s largest shareholders since 2021, when it sold Anthony’s Coal Fired Pizza & Wings to BurgerFi.

Additionally, in August, Allison Greenfield, Vivian Lopez-Blanco and Gregory Mann resigned from the board of directors. David Gordon was appointed as an independent director.

Earlier this year, the company said it defaulted on a credit agreement with $51.3 million outstanding. The action occurred because the company didn’t meet a minimum liquidity requirement. It then entered a forbearance agreement with TREW. L Catterton and TREW agreed to lend up to $2 million each to help BurgerFi during the strategic review process.

BurgerFi, which went public via a SPAC in 2020, has struggled post-COVID, with same-store sales falling 8 percent in 2023 and 9 percent in 2022. In Q1 of 2024, comps dropped 13 percent and systemwide sales decreased by 17 percent. Carl Bachmann, who became CEO in July 2023, introduced a five-point plan aimed at revamping the brand by updating infrastructure and technology, improving the menu, redefining the store footprint, implementing operational gold standards, and boosting brand awareness.

BurgerFi joins several entities that have declared bankruptcy thus far in 2024, including Red Lobster, Rubio’s Coastal Grill, Tijuana Flats, Sticky Fingers, Oberweis Dairy, Tocaya and Tender Greens, Roti, Foxtrot and Dom’s Kitchen, a 126-unit Pizza Hut franchisee, a 25-unit Arby’s franchisee, a 48-unit Subway franchisee, a 17-unit Popeyes franchisee, World of Beer, Buca di Beppo, and a six-unit Alamo Drafthouse Cinemas franchisee.