Wendy’s has been under pressure as U.S. fast-food chains contend with weaker traffic, higher food costs, and value-focused consumers. That pressure sharpened this week when Meritage Hospitality Group, one of the brand’s largest franchisees, sought bankruptcy protection. The Grand Rapids, Michigan-based operator said it plans to keep restaurants open while it restructures.
Meritage filed for Chapter 11 with 314 Wendy’s restaurants in its portfolio Meritage Hospitality Group announced on September 17 that it had voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Michigan. The company said it operates 314 Wendy’s restaurants, one Bojangles location, and five independently branded concepts across 15 states. According to its announcement, the filing is intended to strengthen its balance sheet and create more financial flexibility while operations continue.
Industry publication Nation’s Restaurant News, citing court documents, reported that Meritage listed between $10 million and $50 million in assets and between $10 million and $50 million in liabilities in the initial filing. The same report said the company owes about $150 million to C...