Meritage Hospitality Group seeks Chapter 11 protection for its 300+ Wendy's outlets

Meritage Hospitality Group, headquartered in Grand Rapids, voluntarily entered Chapter 11 bankruptcy in a Michigan court, citing financial pressure from the wider Wendy’s brand slowdown. The franchisee runs 314 Wendy’s restaurants, a single Bojangles, and five additional dining concepts across 15 states, employing roughly 9,000 staff members. Meritage expects its locations to stay open throughout the restructuring, with workers continuing to receive wages and benefits pending court approval.

It has asked the court to grant “first-day” motions that would allow ordinary business activities, such as paying suppliers and serving customers, to proceed uninterrupted. The company plans to secure debtor-in-possession financing and use cash flow from its restaurants to maintain liquidity during the case. The filing comes as Wendy’s reported a 7% drop in U.S. sales for the second quarter, closed 245 more restaurants than it opened in early 2026, and announced a new CEO, Bob Wright, who pledged improvements to food, pricing, and marketing.