Wendy’s Franchisee Sells 42 Locations, May Close 60 More Amid Bankruptcy
WHO:
Fast Company - Meritage Hospitality Group, a Michigan-based Wendy’s franchisee, operated 314 Wendy’s locations when it filed for bankruptcy.
Fast Company - Meritage filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Michigan.
Inc - Meritage is selling 42 Wendy’s restaurants; the article describes the transaction as worth $18.6 million.
WHAT:
CBS News US - More than 7,500 restaurant locations nationwide closed in the first six months of 2026.
Fast Company - Meritage is seeking court approval to close at least 20 and no more than 60 additional Wendy’s locations.
Fast Company - The bankruptcy filing does not identify the locations that may close; Meritage said specific closures would be determined and disclosed later.
Fast Company - Meritage had already closed 33 underperforming stores in nine states after filing for bankruptcy.
Fast Company - Meritage had also shuttered around 60 underperforming stores before its bankruptcy filing.
Fast Company - If approved, the additional closures could eliminate nearly one-third of the 314 locations Meritage operated when it filed its bankruptcy petition.
Inc - The $18.6 million sale of 42 restaurants could help Meritage pay overdue royalties; the article says the transaction will not resolve the company’s broader financial difficulties.
WHERE:
Fast Company - The bankruptcy case was filed in the U.S. Bankruptcy Court for the Western District of Michigan.
Fast Company - The 33 post-filing closures were spread across nine states.
WHEN:
Fast Company - Meritage filed for Chapter 11 protection on September 17, 2026.
Fast Company - The possible additional closures could occur over the coming weeks through November 13.
Fast Company - The approximately 60 pre-filing closures began in Q4 2025.
WHY:
CBS News US - Rising costs and declining sales are forcing restaurants to close.
Fast Company - Lenders required the 33 post-filing closures as a condition for Meritage to continue using cash during the bankruptcy process.
Fast Company - The stores already closed were described as underperforming.
Inc - The sale could provide funds toward overdue royalties.
HOW:
Fast Company - Meritage is seeking bankruptcy-court approval for the proposed additional closures.
Inc - Meritage is selling 42 restaurants in a transaction valued at $18.6 million.
(UPDATED October 26, 2026 23:11 UTC)
Michigan-based Wendy’s franchisee Meritage Hospitality Group has filed for Chapter 11 bankruptcy protection, putting its 314 locations at risk as it seeks court approval to close at least 20 and as many as 60 more. The company has already shut 33 underperforming restaurants across nine states since filing, after closing around 60 before bankruptcy, and is selling 42 locations for $18.6 million to help pay overdue royalties. The proposed closures could eliminate nearly one-third of its restaurants, amid a broader wave of more than 7,500 U.S. restaurant closures in the first half of 2026.
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(UPDATED October 26, 2026 22:12 UTC)
Michigan-based Wendy’s franchisee Meritage Hospitality Group has filed for Chapter 11 bankruptcy protection and is seeking court approval to close at least 20 and as many as 60 more restaurants, potentially eliminating nearly a third of the 314 locations it operated when it filed. The company has already closed 33 underperforming locations across nine states since filing, after shuttering about 60 more before bankruptcy, and is selling 42 restaurants in a deal valued at $18.6 million. The sale could help cover overdue royalties, while Meritage says it will determine and disclose the locations of any additional closures later, which could take place through November 13.