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Meritage Hospitality Group

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business1 hour ago•21 min saved

Wendy’s Franchise Giant Meritage Files for Bankruptcy Amid Termination Dispute

Meritage Hospitality Group, which operates 314 Wendy’s restaurants in 15 states, filed for bankruptcy protection after Wendy’s terminated its franchise agreement. The company says it will continue operating and paying about 9,000 employees during the proceeding, while Wendy’s claims roughly $27.4 million in royalties and $119.5 million in continuous-operations fees; Meritage had already closed 60 Wendy’s locations last year as part of a restructuring.

via Chicago Tribune|

#bankruptcy #business #food-service

business3 days ago•1 min saved

Wendy’s Franchisee Meritage Enters Chapter 11 Amid Sales Slump

Meritage Hospitality Group, a major Wendy’s franchisee, filed for Chapter 11 bankruptcy after closing about 60 locations. The Grand Rapids-based operator runs 314 Wendy’s restaurants (plus a Bojangles and five Morning Belle), with assets between $10 million and $50 million and roughly $150 million owed to City National Bank. Wendy’s says it supports franchisees and aims to strengthen the brand, while the company itself has seen six straight quarters of declining same-store sales (about 7% last quarter; over 10% two-year decline). Meritage previously hired a restructuring CEO, secured forbearance from lenders, and reported a 48% drop in store-level EBITDA to $36.2 million; it has paused or altered breakfast service at underperforming locations to protect margins.

via nrn.com|

#bankruptcy #business #chapter-11