Meritage Hospitality Group is seeking court approval to close up to 60 more Wendy’s locations as its Chapter 11 bankruptcy case moves forward.
The Michigan-based franchisee, which filed for bankruptcy on Sept. 16, operated 314 Wendy’s restaurants at the time of its filing. Meritage has asked the bankruptcy court to authorize shuttering at least 20 locations but no more than 60, with closures potentially rolling out on select Fridays through Nov. 13. The specific restaurants remain undisclosed, as the filing states all shutters will be determined and revealed “at a later time.”
This latest request follows a brutal stretch of contraction for the company. Meritage has already eliminated 33 restaurants from its portfolio since filing for bankruptcy — 20 in September and another 13 in October. Combined with roughly 60 underperforming stores closed beginning in the fourth quarter of last year, the franchisee has shed approximately 93 locations in total since 2023.
The earlier closures across multiple states were mandated by Meritage’s lenders as a condition for the company to continue accessing cash during bankruptcy proceedings, according to Fast Company.
“Because the substantial majority of Meritage’s restaurant portfolio operates under Wendy’s brand, those system-wide pressures have had a significant impact on the Company’s financial position,” Meritage said in a previous statement.
The franchisee told The Post its focus remains on preservation rather than contraction. “Our goal is to keep as many restaurants open as possible. We will provide updates when there is meaningful new information to share rather than commenting on each procedural filing,” the company said.
Meritage’s struggles unfold against a backdrop of broader retreat for the Wendy’s brand. The Ohio-based burger chain announced in a recent investor call that it plans to close 5% to 6% of its U.S. Restaurants — approximately 240 to 360 locations — in the first half of 2026. Wendy’s corporate framed the move as a portfolio optimization effort.
“By closing consistently underperforming restaurants, we’re enabling our franchisee partners to increase focus on locations with the greatest potential for profitable growth,” the company said in a February statement.
Wendy’s has now posted same-store sales declines for six consecutive quarters as customers migrate to rival fast-food chains. The slippage culminated in August when Burger King overtook Wendy’s as the nation’s second-largest burger chain by sales, ending Wendy’s six-year reign behind McDonald’s.
Meritage, which began as a hotelier before building one of the country’s largest Wendy’s franchise operations, also owns additional branded restaurants across 15 states. The company did not immediately respond to The Post’s request for a list of affected locations.