A Wendy’s franchisee has revealed Connecticut locations it owns as it seeks bankruptcy protection from creditors — in a request for a judge’s order to keep the lights on at those restaurants.
Meritage Hospitality Group filed for bankruptcy last week with the goal of staying in business by eliminating some of its debt owed creditors. In a court document this week, Meritage attorneys asked a bankruptcy judge to grant Meritage permission to set aside funds to continue paying for varying services essential to keeping its restaurants operating, including electricity, water, sewer, natural gas and trash disposal.
Meritage has also requested permission to use available cash to continue paying employees and maintaining their existing benefits programs.
Through its franchise services subsidiary Quality Is Our Recipe LLC, Wendy’s has asked a judge to allow it to suspend providing further franchise support to Meritage-owned restaurants. In a bankruptcy document, Meritage argued for continued Wendy’s support, calling it “indispensable to any viable restructuring”.
Michigan-based Meritage lists 29 Wendy’s locations in all eight Connecticut counties, at:
Another 31 Connecticut locations are operated by other franchisees. Meritage blamed escalating beef prices and other costs in its inability to keep up with debt payments, including for franchise services it has received from Wendy’s.
At some locations, Eversource and United Illuminating bills exceeded $5,000 for the 30-day summer window in which expenses were itemized in the bankruptcy document, with trash hauling services costing more than $1,000 for that period in some cases.
Staff writer Luther Turmelle contributed to this report.
Dining and Cooking