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 row that the embattled fast food operator has instituted rounds of restaurant closures.
The 13 stores slated for closure are located in Florida, Georgia, Oklahoma, North Carolina, Michigan, Massachusetts, and Texas. They add to 20 restaurants that Meritage has closed on previous Fridays since September 25.
At the time of its bankruptcy petition, Michigan-based Meritage operated 314 stores, making it one of the biggest restaurant owners in the Wendy’s system. The company, originally a hotelier, has operated Wendy’s stores since the late 1990s.
Court documents show The Wendy’s Company had moved to terminate Meritage’s franchise agreement before the bankruptcy process began and has since been seeking to exert more control over which locations ultimately remain open.
Reached for comment by Fast Company, a spokesperson for Wendy’s said that it works on a “case-by-case basis” with struggling franchise operators to help determine the best way forward.
“While restaurant decisions occur from time-to-time, our goal is to preserve operations, improve restaurant performance and position the Wendy’s system for sustainable long-term growth,” Wendy’s said via email.
According to a new court document, the following locations in seven states were scheduled to be closed on Friday, October 16:
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