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Hardee’s Franchisee Enters Chapter 7 as Corporate Reopens 15 Locations

The filing freezes creditor claims, signaling a shift to corporate-run reopenings.

Overview

  • ARC Burger filed for Chapter 7 liquidation in Georgia this week, listing more than $29 million in debt.
  • Hardee’s says it has already reopened 15 former ARC restaurants in Georgia, Missouri, and South Carolina as corporate-run stores, with plans to bring dozens more back online.
  • ARC had bought 80 locations in 2023 from another distressed operator, then shut 77 restaurants last year, cutting about 1,600 jobs.
  • Hardee’s sued ARC in federal court for more than $6.5 million in unpaid royalties, rent, and advertising fees, and the bankruptcy’s automatic stay now pauses that case.
  • Hardee’s also says it is exploring ways to revive other closed sites outside the ARC portfolio through new franchisees or direct ownership.