Last month, Starboard Group, a Florida-based restaurant operator, pursued debt protection for its Wendy’s restaurants. SBG operates around 61 Wendy’s throughout the Southeast including Florida and Alabama. According to reports, the company operated nearly 100 Wendy’s restaurants in 2020. Moreover, SBG is a franchisee of several other establishments, such as Taco Shop, Subway, and McAlister’s Deli. Fortunately, the company advised that the bankruptcy filing had not impacted those brands. SBG’s CEO Andrew Levy announced the basis for the filing is a “combination of post-COVID consumer habits, ever-increasing costs to do business, and significantly higher interest rates.” Additionally, various franchisees have filed for debt protection this year, including Burger King, Hardee’s, and a Popeyes franchisee. Many restaurants have dealt with increasing costs and heavy debt levels, challenging their operations, and resulting in pursuing federal aid to reorganize debts.
Source: A large Wendy’s franchisee declares bankruptcy
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