Meritage Closes Five More Wendy's Stores as Bankruptcy Wind-Down Accelerates

Meritage Hospitality Group shut down five more Wendy's restaurants on Friday — the second consecutive weekend of closures — bringing its total to at least 10 stores in 14 days as it restructures under Chapter 11 protection.

A court docket filed late Friday ordered the abrupt closure of five restaurants in Indiana, Oklahoma, Georgia, and Florida, according to reporting by Fast Company. As of early Monday, the locations still appeared on Wendy's online store locator, though Google reviewers and local press had flagged the closings.

Meritage, a Michigan-based franchisee and one of the largest operators in the Wendy's system, pledged to close at least 30 underperforming stores as part of a cash collateral agreement with its primary lender. The company owes that lender $135 million, court filings show. Closures are scheduled to continue through at least October 16.

Which stores closed this weekend?

Per Friday's bankruptcy docket, the latest shuttered restaurants are:

• 1415 East Main Street, Cushing, OK 74023
• 1202 Lincolnway West, La Porte, IN 46350
• 4029 Five Forks Trickum Road, Lilburn, GA 30047
• 1901 Apalachee Parkway, Tallahassee, FL 32301
• 753 Park Avenue, Orange Park, FL 32073

A week earlier, five Wendy's locations in Virginia, Florida, Texas, and Oklahoma also closed.

What does the cash collateral deal require?

The agreement approved by a bankruptcy judge last month gives Meritage runway to pay employees and continue day-to-day operations while it works to "rebut any skepticism" about its ability to stay in business. In exchange, Meritage must vacate money-losing locations. The shuttering of those stores counts as "adequate protection" for Meritage's lenders.

How large is Meritage's footprint?

The franchisee owned 314 Wendy's restaurants across 15 states and employed roughly 9,000 people when it filed for bankruptcy in mid-September. It bought its first fleet of 28 Wendy's in the late 1990s after running hotels.

Meritage had already closed roughly 60 stores before seeking Chapter 11 protection. The current round of 30 or more forced closures could shrink its existing base by 10% or more.

Why did Meritage file for bankruptcy?

In a court declaration filed two days after its petition, Meritage blamed a cascade of pressures that began in 2024 and intensified last year. The company cited "souring U.S. beef prices" and a sales disruption driven by "unusual winter weather."

It also pointed directly at the brand it operates. Meritage took aim at the "reduced frequency and effectiveness" of Wendy's marketing, and said national promotional strategies built on deep discounts had compressed margins. Wendy's hired a new CEO in May to address sliding U.S. sales.

What is the dispute with Wendy's?

The relationship between the two has frayed badly. Meritage filed for bankruptcy the day after receiving a franchise termination notice from Wendy's. The burger chain claims it is owed $146.9 million in past-due royalties and "continuous operations" fees.

Meritage has disputed the legitimacy of those terminations. Wendy's fired back in its bankruptcy response that Meritage no longer has a right to operate the restaurants.

How does this fit Wendy's broader network?

Wendy's reported 5,724 U.S. locations in its second-quarter filing this year, down from 5,967 a year earlier. Meritage's contraction accounts for a meaningful slice of that decline, and the franchisee's footprint will keep shrinking as long as the cash collateral agreement stays in effect.

Fast Company reached out to Meritage Hospitality Group and The Wendy's Company for comment; neither had responded as of publication. The story is developing.