Operator of 314 Wendy’s locations in the US files for bankruptcy protection
The franchisee said it will keep restaurants open and pay employees while it seeks a court-supervised restructuring.
- Meritage Hospitality Group filed for Chapter 11 bankruptcy on Thursday in a Michigan court, operating 314 Wendy restaurants across 15 states that will remain open during restructuring.
- Deteriorating beef economics and what Meritage called "reduced frequency and effectiveness of Wendy's $WEN brand marketing" drove the collapse, as same-store sales fell for six consecutive quarters and Burger King reclaimed the second-biggest burger brand ranking.
- Court records show Meritage listed $651 million in liabilities against $725.9 million in assets. The company faces a "franchise termination dispute" with Wendy's franchising unit claiming $146.9 million in unpaid royalties and operations fees.
- Wendy's franchising unit delivered a notice on Sept 16 seeking to terminate Meritage's franchise rights "effective immediately," though Meritage disputes the termination and asserts its franchise rights remain intact during the case.
- Meritage leadership determined that "a voluntary, court-supervised restructuring is the most effective and proactive path to strengthen Meritage," with the company continuing to pay its roughly 8,850 employees during the process.
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Wendy's is on a new adventure, as it decided to terminate franchise agreements with one of its largest franchisees, Meritage Hospitality Group - The square burgers, the Frosty and the fries with melted cheese and bacon made Wendy's one of the most recognizable foreign fast food chains in Greece in the 90s
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Independent EspañolOne of Wendy’s largest franchisee in the United States applied for bankruptcy protection after the restaurant chain attempted to terminate its franchise contract.
Operator of 314 Wendy’s locations in the US files for bankruptcy protection
One of the largest U.S. franchisees for Wendy’s has filed for bankruptcy protection after the restaurant chain tried to terminate its franchise agreement. Meritage Hospitality Group, which operates 314 Wendy’s restaurants in 15 states, said in a statement last week it intends to keep operating its restaurants and paying its 9,000 employees during the bankruptcy...
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