– Arby’s Franchisee Files For Chapter 11 Bankruptcy:
Miracle Restaurant Group declared its second bankruptcy since 2010, citing financial pressures, rising costs, negative same-store sales, and its inability to sell a number of low-performing stores.
Dive Brief:
- Miracle Restaurant Group, a 25-unit Arby’s franchisee, declared Chapter 11 bankruptcy on June 20, according to court filings.
- The company, which has been an Arby’s operator since 2005, has restaurants in Illinois, Indiana, Texas, Mississippi and Louisiana, Donald Moore, manager and member of Miracle Restaurant Group, said in a court filing.
- In addition to the impact of the COVID-19 pandemic, the operator cited inflationary pressures, negative same-store sales, an inability to sell underperforming locations and the failure of the IRS to timely refund over $3 million to the company as part of Employee Retention Tax Credits as reasons for filing for bankruptcy protections, Moore said.
Dive Insight:
This isn’t the first time the chain has filed for Chapter 11. In 2010, the company operated over 60 stores, but filed for bankruptcy protection under Chapter 11, leading to closures of a number of stores. Creditors were paid in full under its restructuring plan, Moore said in the court filing.
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