Fast-food chain Hardee’s closing 77 restaurants – Business News
Dozens of Hardee’s areas throughout 9 states are set to close down after franchisee ARC Burger, LLC filed for Chapter 7 chapter.
The main operator — one of the chain’s largest — is liquidating its property and shutting down 77 Hardee’s areas in Alabama, Florida, Georgia, Illinois, Kansas, Missouri, Montana, South Carolina and Wyoming. The proceeds from the liquidation will probably be distributed to collectors.
The collapse follows a months-long legal battle between ARC and Hardee’s, which alleges the franchisee racked up more than $6.5 million in unpaid charges and royalties.
ARC Burger goes out of business and closing practically 80 Hardee’s restaurants after piling up more than $29 million in liabilities. Refrina – stock.adobe.com
Documents cited by People magazine show that ARC has more than $29 million in liabilities and that it owes money to more than 5,000 collectors.
Last November, Hardee’s filed a lawsuit in opposition to ARC alleging breach of contract for excellent funds owed within the franchise settlement.
The company stated within the criticism that it sought to work with ARC on “payment defaults, including by attempting to reach agreement with ARC on a payment plan for past-due amounts.”
“But ARC has refused [Hardee’s] efforts to enter into a workout agreement, and despite periodic partial payments, the total amount owed to [Hardee’s] continues to increase each week,” Hardee’s wrote.
According to the criticism, Hardee’s terminated its franchise agreements with ARC final September however allowed the firm to operate its restaurants whereas it looked for a purchaser — contingent on ARC remaining present on its funds.
Hardee’s accused ARC of failing to satisfy its fee obligations “despite all signs showing that ARC is profitably running the restaurants.”
Nearly 80 Hardee’s areas throughout 9 states are set to close after franchisee ARC Burger filed for Chapter 7 chapter. wolterke – stock.adobe.com
“Wherever ARC’s profits are going, they are not being applied to past-due or ongoing fees owed to [Hardee’s],” the declare alleged.
The Post has sought remark from ARC and Hardee’s.
