BurgerFi’s liquidating trustee is going after former executives and financial advisers over the company’s $161 million acquisition of Anthony’s Coal Fired Pizza.
The allegation is simple:
The deal was too expensive, and pushed BurgerFi into insolvency.
The trustee says insiders and advisers moved forward with the acquisition despite warning signs, saddling the company with debt it couldn’t support. BurgerFi ultimately filed Chapter 11 in 2024.
For bankruptcy lawyers, this is the part worth watching:
A bad acquisition can become years of post-bankruptcy litigation over solvency, fiduciary duties, and who knew what before the deal closed.
-The Bankruptcy Brief