Hardee's franchisee ARC Burger LLC filed for Chapter 7 bankruptcy and closed 77 locations across nine states, according to court documents filed in the US Bankruptcy Court for the Northern District of Georgia.
The filing cites "a period of significant financial instability," and court records show the company faced more than $29 million in debt at the time of liquidation.
ARC Burger previously operated restaurants in Alabama, Florida, Georgia, Illinois, Kansas, Missouri, Montana, South Carolina, and Wyoming, court papers show.
The franchisee acquired 80 Hardee's locations from Summit Restaurant Holdings in 2023 after that company filed for Chapter 11, court records indicate.
Hardee's Restaurants sued ARC Burger last year, alleging missed franchise payments and other contract obligations, according to the filing referenced in court documents.
In Florida the bankruptcy lists four locations in North Florida and the Panhandle as closed, and those sites currently show as "temporarily closed" on Hardee's website, court records show.
Florida debts listed in the filing were smaller than total company liabilities, but included more than $80,000 in bills to various companies and nearly $50,000 owed to the Florida Department of Revenue.
The filing also lists about $7,500 owed to the cities of Bonifay, Chattahoochee, Chipley, and Graceville, and roughly $10,500 billed to the local electric utility, according to court records.
Reopenings And Corporate Takeovers
At least two former Florida locations are advertising new hires under listings that describe the restaurants as "now corporate owned," according to job postings on SimplyHired.com and Indeed.com.
Fast Company reported that ARC Burger locations in at least three states have already reopened after closures, and Hardee's provided comment to that outlet confirming some reopenings.
A Hardee's spokesperson told Fast Company the company has reopened 15 locations in the Georgia, Missouri and South Carolina markets as corporate restaurants.
The spokesperson added that this is part of a broader reopening strategy by which Hardee's expects to assume ownership and resume operations for more than 40 recently closed locations that were previously independently owned and operated by ARC Burger, the company told Fast Company.
Several closed locations are listed as hiring and as corporate owned, which suggests a mix of store liquidations and corporate conversions is underway as ownership moves from ARC Burger to Hardee's corporate control.
Hardee's is a fast food restaurant known for made from scratch biscuits, 100% Angus Thickburgers, and hearty breakfasts, and the chain was acquired by CKE Restaurants Inc. in 1997, court and company materials note.
