Grand Rapids Restaurant Operator Meritage Hospitality Files for Chapter 11
One of Grand Rapids’ largest restaurant companies has filed for Chapter 11 bankruptcy protection, but the company says its restaurants are expected to remain open during the restructuring process.
Grand Rapids-based Meritage Hospitality Group filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Western District of Michigan on Sept. 17.
Meritage operates 314 Wendy’s restaurants, one Bojangles location and five independently branded concepts across 15 states, according to the company. It employs approximately 9,000 people.
For West Michigan diners, the company has a particularly visible local presence. FOX 17 reports that Meritage owns 54 Wendy’s restaurants in Michigan as well as all six Morning Belle restaurants.
What happens to the restaurants?
For now, the filing does not mean the restaurants are closing.
Meritage says it intends to maintain restaurant-level operations during the Chapter 11 process and continue paying employee wages and benefits, subject to court approval of the company’s bankruptcy motions.
The company said it is seeking debtor-in-possession financing and expects that financing, combined with cash generated by restaurant operations, to provide liquidity during the restructuring.
Why Meritage filed for Chapter 11
Meritage said the filing followed extended financial pressure, including broader challenges affecting the Wendy’s system. The company said management and its board concluded that a court-supervised restructuring offered the best opportunity to improve the company’s balance sheet and long-term financial position.
Chapter 11 generally allows a company to continue operating while restructuring debts and negotiating with creditors.
What Grand Rapids diners should know
At this point, Meritage has not announced a broad shutdown of its restaurants as part of the filing.
That means West Michigan Wendy’s locations and Morning Belle restaurants operated by Meritage should not be assumed closed simply because the parent company entered Chapter 11.
HOPEFULLY, this is not foreshadowing for what’s to come in this industry…
Grand Rapids Night Out will continue watching the case for any restaurant closures, ownership changes or other developments that directly affect local diners.
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