For the fourth consecutive weekend, Meritage Hospitality Group closed additional Wendy’s restaurants as part of its Chapter 11 bankruptcy. On October 18, 13 more locations across six states shut their doors, bringing the total past 33 since the September 17 filing. Court documents project up to 60 further closures through November 13.
Meritage Hospitality Group, which operated 314 Wendy’s franchise restaurants across 15 states at the time of its September 17 bankruptcy filing, ranks among the largest franchisees in the Wendy’s system. The company employs approximately 9,000 workers.
Since the filing, closures have accumulated across four consecutive weekends, with the October 18 batch the most geographically dispersed yet. Meritage disclosed EBITDA down 48% in the period preceding the filing, with profit margins at a 30-year low, according to court documents. Kevin Cleary has been appointed Chief Restructuring Officer to oversee the proceedings.
Thirteen Locations Close Across Six States on October 18
The October 18 closures span Oklahoma (El Reno, Oklahoma City, Shawnee), Georgia (Atlanta, Lawrenceville, Lilburn), North Carolina (Winston-Salem, Durham, Clemmons), Michigan (Manistee), Texas (Lubbock), Florida (Jacksonville), and Massachusetts (Feeding Hills). The 13 sites bring the cumulative total of Meritage closures since September 17 to more than 33 locations.
Wendy’s corporate has described its approach to franchisee distress as a case-by-case process. By unit count, this collapse is the largest within the Wendy’s franchise network since the 2020 bankruptcy of NPC International, which operated 393 Wendy’s units at the time of its filing.
Financial Background: EBITDA Down 48%, Margins at a 30-Year Low
Meritage’s Chapter 11 filing disclosed severe financial deterioration. The company reported an EBITDA decline of 48% and profit margins at their lowest point in three decades, driven by a combination of rising labor costs, consumer traffic softness, and commodity inflation.
Meritage is not the only large franchisee group to file in 2026. Operators of Hardee’s, Carl’s Jr., and Popeyes units have entered restructuring proceedings this year as well, reflecting a broader pattern of financial distress among mid-tier franchise groups carrying significant debt loads accumulated during the post-pandemic expansion period.
Trian, Wendy’s Corporate, and the Broader Ownership Context
In August 2026, Trian Fund Management, whose co-founder Nelson Peltz holds approximately 16% of Wendy’s International stock, shelved a take-private bid for the brand. That decision left Wendy’s operating as a public company during a period of heightened franchisee instability.
The Meritage bankruptcy is a franchisee-level proceeding, separate from Wendy’s corporate finances, but the geographic concentration of closures raises questions about network exposure in affected states. Wendy’s corporate and Meritage’s restructuring team continue to operate under separate legal processes.
What Comes Next in the Meritage Restructuring
Court documents in the Meritage case indicate closures may continue through November 13, with up to 60 additional locations potentially shutting. As of October 18, no public announcement of a buyer for the Meritage portfolio had been made. Chapter 11 proceedings typically resolve through a reorganization plan, a sale of assets to another franchisee group, or liquidation.
The approximately 9,000 Meritage employees across 15 states remain in uncertain positions as the process unfolds. The timeline for a resolution has not been confirmed in public court filings reviewed by Fast Company and Rolling Out as of publication date.
This content is provided for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations vary by state and individual circumstances and may change over time. Readers should consult a qualified attorney, tax professional, or other licensed professional regarding their specific situation. Nothing herein creates an attorney-client relationship.
<
