BurgerFi, Anthony’s Pizza owner seeks to reject these leases for headquarters, 19 closed eateries

The owner of BurgerFi and Anthony’s Coal Fired Pizza & Wings is looking to reject "burdensome" unexpired leases for its corporate headquarters in Florida and 19 closed restaurants as part of its bankruptcy proceeding.

BurgerFi International provided a list of the locations it has already shuttered in court documents for its previously reported Chapter 11 filing, asking a judge to allow it to retroactively exit those deals. In addition, the restaurant operator wants to reject its lease for what had been its headquarters, at 200 W. Cypress Creek Road, Fort Lauderdale. The company was occupying 15,250 square feet at that site, according to CoStar data. In a recent regulatory filing, BurgerFi listed its headquarters address as 200 E. Las Olas Blvd., Fort Lauderdale.

BurgerFi didn't immediately respond to an email from CoStar News seeking comment Friday.

Earlier this month, BurgerFi joined the herd of restaurant chains that have filed for bankruptcy protection — in some cases shuttering some or all of their locations — in the face of the aftermath of the pandemic, a decline in consumer spending and spiraling costs for labor and food.

Rubio's, Buca di Beppo, World of Beer, Roti, Tijuana Flats, Red Lobster and most recently Hawkers Asian Street Food are part of that group.

In its initial Chapter 11 documents, BurgerFi said the case only involved its 67 corporate-owned locations, for its namesake chain and Anthony's Pizza, not franchisee-owned sites. And at that time, BurgerFi reported it had already closed 19 underperforming corporate-owned eateries, reducing its operating costs.

In a recent court filing, BurgerFi wants approval to exit not only those leases but also a lease for its one-time headquarters.

"For each of the leases, the debtors have already ceased ongoing operations at the lease location prior to the petition date and gave notice of surrender to the applicable landlord," BurgerFi said in Chapter 11 documents. "The leases are for corporate offices determined to be burdensome or for restaurants determined to be underperforming or unprofitable. The debtors have determined that the costs of the leases outweigh any marginal benefits that could possibly be achieved from assignments or subleases."

The closed restaurants "were [suboptimal] performers in terms of revenue and profits, and the debtors’ pre-petition sales efforts showed little market interest for these leases," according to BurgerFi. Retroactive rejection of the unexpired leases is appropriate, according to the restaurant operator.

"The debtors’ obligations to pay, for example, post-petition rent, real estate taxes, utilities, insurance and other related charges for vacant premises eliminate any potential value of the leases to the debtors’ estates," Burger Fi said in court papers. ''Accordingly, the leases are not advantageous assets for the debtors and, therefore, should be rejected to eliminate further financial burden and post-petition administrative costs to the estates.''

The restaurants on the list include 11 in Florida and eight in other states:

• 420 E. Altamonte Drive, Altamonte Springs, Anthony's Coal Fired Pizza.
• 7959 NW Atlantic Ave., Delray Beach, BurgerFi.
• 12712 Tamiami Trail E., Naples, BurgerFi.
• 628-3 Atlantic Blvd., Neptune Beach, BurgerFi.
• 10647 Sheldon Road, Tampa, BurgerFi.
• 6230 W. Indiantown Road, Jupiter, BurgerFi.
• 1514 Immokalee Road, Naples, BurgerFi.
• 16120 Preserve Marketplace Blvd., Odessa, BurgerFi.
• 1900 Okeechobee Blvd., West Palm Beach, Anthony's Coal Fired Pizza.
• 1955 E. Hallandale Beach Blvd., Hallandale Beach, BurgerFi.
• 10590 Pines Blvd., Pembroke Pines, BurgerFi.

• 7776 Norfolk Ave., Bethesda, Anthony's Coal Fired Pizza.

• 219 N. Main St., Natick, Anthony's Coal Fired Pizza.

• The Promenade Shops at Clifton, Clifton, Anthony's Coal Fired Pizza.

• 960 Dekalb Pike, Blue Bell, Anthony's Coal Fired Pizza.
• 2045 Mackenzie Way, Cranberry Township, Anthony's Coal Fired Pizza.
• 50 E. Wynnewood Road, Wynnewood, Anthony's Coal Fired Pizza.

• 271 Indian Lake Blvd., Hendersonville, BurgerFi.

• 220 Hillside Road, Cranston, Anthony's Coal Fired Pizza.