From Nation's Restaurant News · · 1m 10s
Wendy's Franchisee Bankruptcy Sale
A buyer emerges for 42 bankrupt Wendy's restaurants at $18.6m.
In brief
A buyer emerges for 42 bankrupt Wendy's restaurants at $18.6m. Hiren Patel's Divine Investors will buy 42 Wendy's locations from Meritage Hospitality Group for $18.6m to provide liquidity for bankruptcy restructuring. Originally reported by Nation's Restaurant News.
Wendy's Franchisee Bankruptcy
Meritage Hospitality Group filed for bankruptcy with $155 million in secured debt.
Potential Buyer Emerges
Hiren Patel's Divine Investors proposed buying 42 Wendy's locations for $18.6 million.
Geographic Coverage
The 42 restaurants are in Arkansas, Tennessee, Mississippi, and Missouri.
Bankruptcy Context
Meritage operated 314 restaurants before closing 60 earlier this year.
Sale Details
The deal represents 17% of Meritage's 254 restaurants and requires court approval.
Price Per Location
The average sale price is $443,000 per Wendy's restaurant.
Bankruptcy Timeline
The sale could close by late November after Meritage filed for bankruptcy last month.
Reasons for Bankruptcy
Meritage blamed ineffective brand marketing, winter weather, soaring beef prices, and discounting.
Restructuring Impact
The cash will provide critical liquidity for Meritage's debtors' estates and support restructuring.
The short version
Hiren Patel's Divine Investors will buy 42 Wendy's locations from Meritage Hospitality Group for $18.6m to provide liquidity for bankruptcy restructuring.
