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Meritage Hospitality Group, which runs 314 Wendy's locations across 15 states, filed for Chapter 11 bankruptcy protection. Wendy's franchising arm, Quality Is Our Recipe LLC, is listed as its largest unsecured creditor, owed roughly $24.9 million in deferred franchise fees. Meritage says it will continue operating its restaurants, including its Bojangles and independent locations, during restructuring.
A major Wendy's franchisee operating 314 restaurants has filed for Chapter 11 bankruptcy protection, citing what it called sustained system-wide headwinds alongside broader struggles facing the parent company. The filing marks a significant setback for Wendy's, which has already been dealing with declining sales and a contracting store count.
New Wendy's CEO Bob Wright has detailed a five-part strategy to reverse the chain's slide behind Burger King into third place among U.S. burger chains, citing prior 'quality degradation' as a key cause. The plan covers menu and ingredient improvements, fixing inconsistent store operations, selectively closing weak locations while opening new ones, overhauling marketing with new hire Tariq Hassan as chief marketing and customer growth officer, and scaling back reliance on discount promotions in favor of core menu value.