Meritage Hospitality Group filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Michigan. The company operates 314 Wendy's locations. This portfolio represents approximately 5% of the chain's domestic system.
Management attributed the filing to sustained weak sales and financial pressures affecting the broader Wendy's brand. The Wendy's brand has struggled with several consecutive quarters of same-store sales declines. Meritage previously closed 60 underperforming restaurants earlier this year.
The court-supervised process allows the company to restructure its finances and strengthen its balance sheet. Meritage intends to maintain normal operations at its restaurants during the proceedings. The company will continue to pay its employees throughout the restructuring process.