Brookfield Wendy's Among Locations Operated By Bankrupt Franchisee

BROOKFIELD, CT — The Wendy's on Federal Road in Brookfield is among the Connecticut restaurants operated by a major franchisee that recently filed for Chapter 11 bankruptcy protection, according to court filings.

Meritage Hospitality Group operates the Wendy's at 36 Federal Road in Brookfield. The company filed for voluntary Chapter 11 bankruptcy protection Sept. 17 in U.S. Bankruptcy Court for the Western District of Michigan.

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Meritage operates 29 Wendy's restaurants in Connecticut. The company operates 314 Wendy's restaurants across 15 states, according to Meritage.

The bankruptcy does not mean the Brookfield restaurant is closing. Meritage said it anticipates maintaining restaurant-level operations throughout the restructuring process.

The company also said it intends to continue paying its approximately 9,000 employees their wages and benefits without interruption.

Meritage said the filing followed financial pressures facing the company, including what it described as "sustained system-wide headwinds" affecting the broader Wendy's brand in recent years. Because the majority of its restaurant portfolio operates under the Wendy's brand, the company said those pressures have significantly affected its financial position.

Meritage said it had spent more than a year working with its lenders and franchisor before determining that a court-supervised restructuring was the best path forward.

Court records show Meritage received court approval to continue paying employee wages and benefits, while its request to maintain utility services was approved on an interim basis.

The company said the Chapter 11 process will allow it to restructure its balance sheet and create additional financial flexibility while continuing operations.