Meritage Hospitality Group files for bankruptcy, impacting Wendy’s locations

Meritage Hospitality Group, one of the largest operators of Wendy’s restaurants in the United States, has filed for Chapter 11 bankruptcy. The Grand Rapids-based group operates 314 locations across 15 states, including 54 in Michigan.

Wendy’s has terminated its franchise agreements with Meritage and is seeking to prevent the group from conducting business under those agreements. The fast-food chain claims Meritage owes approximately $27.4 million in royalties and fees, along with $119.5 million related to the closure of 60 underperforming restaurants last year. While Meritage states that its approximately 9,000 employees will continue to receive paychecks during the restructuring, the future of the Michigan locations remains uncertain.

Separately, Wendy’s corporate entity is facing broader financial challenges, including a decline in same-store sales and customer traffic. The company’s market capitalization has decreased to $1.25 billion as it navigates rising beef prices and increased competition. New CEO Bob Wright is expected to announce a turnaround strategy following the company’s third-quarter results in November.