One of the largest Wendy’s franchise operators in the U.S. has filed for Chapter 11 bankruptcy protection as it works to restructure its finances.
Meritage Hospitality Group, based in Grand Rapids, voluntarily filed for bankruptcy Thursday in a Michigan court. Meritage said the court-supervised process will give it an opportunity to restructure its debt and strengthen its balance sheet, according to a news release Thursday.
Meritage operates 314 Wendy’s restaurants, one Bojangles and five other restaurants across 15 states, employing about 9,000 people. The company said its restaurants are expected to remain open throughout the restructuring, with employees continuing to receive their wages and benefits, pending court approval of its requests.
Customers should also see little immediate change. Meritage said it plans to continue serving customers and paying suppliers and vendors as usual for goods and services provided after the bankruptcy filing.
The company asked the court to approve a series of so-called “first-day” motions, which would allow it to continue normal business operations while the Chapter 11 case moves forward.
Meritage said its decision follows an assessment of financial pressures facing the company, including challenges affecting the broader Wendy’s restaurant chain. The fast-food giant is closing hundreds of U.S. restaurants as it sees fewer customers and falling sales. Wendy’s closed 245 more restaurants than it opened in the first half of 2026, Finance Buzz reports.
Because the vast majority of Meritage’s restaurants operate under the Wendy’s brand, the company said those challenges have had a significant impact on its finances. Meritage said it remains confident in the potential for a turnaround of the Wendy’s brand.
As part of the bankruptcy process, Meritage plans to seek debtor-in-possession financing, which would provide the company with additional funding to keep operating while it restructures. The company expects the financing, along with cash generated by its restaurants, to provide enough liquidity to fund its business during the Chapter 11 case.
Meritage also said it plans to work with its stakeholders and consider strategic alternatives as it restructures.
Wendy’s overall U.S. sales at existing restaurants fell 7 percent in the second quarter, prompting the company to cut its dividend in half and pull its financial forecast for the rest of the year.
Last month, new CEO Bob Wright said Wendy’s needs to improve its food, prices, customer experience and marketing to win customers back. The chain has also fallen behind Burger King in U.S. sales, thanks to its successful turnaround plan.
