Sister brands BurgerFi and Anthony’s Coal Fired Pizza & Wings have been sold out of bankruptcy to lender TREW Capital Management Private Credit 2 LLC in a credit bid for $44 million, according to court filings Wednesday.
Both BurgerFi and Anthony’s were owned by Fort Lauderdale, Florida-based BurgerFi International Inc. (BFI) which until recently was a public company. Less than four years after going public through a reverse merger with a special purpose acquisition company, or SPAC, BFI filed for Chapter 11 bankruptcy in September.
TREW Capital is led by former Famous Dave’s CEO Jeff Crivello, who acquired BFI’s debt earlier this year, and also gave the company additional funding to help it through the restructuring process. TREW similarly acquired the fast-casual Rubio’s chain out of bankruptcy earlier this year.
The sale of BurgerFi and Anthony’s rights and assets must still be approved by the court in a hearing scheduled for Nov. 6.
But BFI officials in a statement said the transaction positions both brands for growth.
The company shuttered 19 underperforming units, including 10 Anthony’s and nine BurgerFi locations, with the bankruptcy filing. The two chains include 144 locations—93 BurgerFi and 51 Anthony’s units. The sale would directly impact 67 corporate-owned locations, which are mostly Anthony’s.
The 76 franchised locations of BurgerFi and one franchised Anthony’s location are not included in the bankruptcy, but, of course, will have a new franchisor.
Crivello did not immediately respond to requests for more information about plans for the brands.
BFI officials said the sale “caps substantial effort in turning around the company’s operations,” including key initiatives like finding improved vendors for its premium products to downsizing central staff, “all to give the company and its franchisees the best chance of success.”
Jeremy Rosenthal, chief restructuring officer for BFI, said in a statement, “On behalf of the entire management team, I would like to say how pleased we are with the successful auction process. We are happy that the company succeeded in finding a buyer with the capital and experience to invigorate these brands and position them for success.”
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