The fate of dozens of Denny’s restaurants is hanging in the balance after a long-struggling franchisee for the beloved diner chain sought Chapter 11 protection on Wednesday, the latest in a string of bankruptcies involving a once-sprawling restaurant empire owned by a former McDonald’s executive.

The franchisee, EYM Diner, operated roughly 30 Denny’s restaurants at the time of its bankruptcy petition on Wednesday. A number of its locations had already closed in the lead-up to the filing, some quite recently.

Denny’s has been working behind the scenes to help keep the remaining restaurants open, the brand tells Fast Company.

EYM’s bankruptcy follows a lawsuit last month by one of its lenders, InterBank, which claims to be owed more than $18 million, and which has been pushing to have the restaurants sold to a more “capable” operator. 

Citing inspections from Denny’s, InterBank’s lawsuit documents an extensive period of alleged operational decline for EYM, claiming the conditions at its restaurants are “poor and getting worse,” including “food safety conditions at several locations that would likely not pass muster with the health department.”

“Denny’s cannot permit the operation of a substandard restaurant without damage to its brand,” the lawsuit states.

A lawyer for InterBank did not respond to a request for comment.

With restaurants located across Texas and Florida, EYM and its affiliates this week sought protection from bankruptcy court in the Northern District of Texas.

The franchise is owned by fast food entrepreneur Eduardo Diaz, a former president of McDonald’s Mexico, whose various companies have filed for multiple bankruptcies in recent years, Restaurant Business reported.

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