Meridian Restaurants Unlimited (Meridian), a franchisee of Burger King, recently declared bankruptcy and subsequently sold off 70 of its restaurants.
According to QSR Magazine, the franchisee reportedly sold off most of its stores several months after initiating bankruptcy proceedings, which were prompted by the challenges brought about by the Covid-19 pandemic.
Meridian, purportedly one of the largest franchisees of the Burger King brand, attributed its bankruptcy to rising labor costs, increased wages, food inflation, higher shipping expenses, reduced staff availability, and a decline in customer foot traffic.
At the time of its March bankruptcy filing, the company was running a total of 120 restaurants.
In the recent auction held this month, the franchisee had a total of 91 restaurants, and Burger King successfully acquired 32 of them.
Other franchisees, such as Kansas King, Dakota Restaurant Partners, Kraf, and Snake River Foods, acquired the remaining 38 stores for a total of $17 million.
Burger King added restaurants in Utah, Montana, and Wyoming to its portfolio, while Kansas King secured restaurants in Kansas and Nebraska.
Dakota Restaurant Partners acquired a dozen restaurant outlets situated in Minnesota, Montana, and North Dakota, while Kraf obtained seven restaurant units in Arizona.
Snake River Foods obtained three restaurants located in Montana.
Meridian is reported to have submitted a motion to the court, seeking approval for the sale of the remaining 21 outlets.
