Wendy’s store closures update: See the newest list of doomed locations as embattled franchisee shrinks footprint
More than a dozen Wendy’s restaurants were marked for permanent closure this weekend as one of its largest franchisees continues a weeks-long effort to shutter loss-making locations in the wake of a Chapter 11 bankruptcy. Lawyers for the franchisee, Meritage Hospitality Group, told a bankruptcy court that 13 additional Wendy’s stores would be closed as of Friday, marking the fourth weekend in a…
Wendy's, the fast food chain, is experiencing a wave of store closures as one of its largest franchisees, Meritage Hospitality Group, seeks to reduce its losses amidst a Chapter 11 bankruptcy. On October 16, 13 more Wendy's locations were slated for permanent closure, bringing the total to 20 since September 25. These closures are taking place across Florida, Georgia, Oklahoma, North Carolina, Michigan, Massachusetts, and Texas.
Meritage, originally a hotelier, has owned Wendy's stores since the late 1990s and has been operating 314 stores in total. The company has moved to terminate Meritage's franchise agreement before the bankruptcy process began and has since been striving for greater control over which locations remain open. The closures are a result of cash collateral agreements with Meritage's lenders, with the company employing around 9,000 people.
Additional closures are expected, with Meritage potentially closing up to 60 more underperforming stores as part of a court-approved plan.
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