Hardee’s franchisee Summit Restaurant Holdings LLC, which has closed multiple locations in recent weeks, filed for chapter 11 bankruptcy protection on Thursday.
The bankruptcy filing includes multiple Summit limited liability subsidiaries including Bighorn Restaurants, Summit Restaurant Holdings, Empire Restaurants, Heartland Restaurants, Atlantic Star Foods, and Summit Restaurant Development. Together they have recently closed 39 restaurants and 108 restaurants remain open in Alabama, Florida, Georgia, South Carolina, Kansas, Missouri, Wyoming, and Montana.
The restaurants that remain open are operated by Empire, Heartland, Bighorn, and Atlantic Star.
According to documents filed with the Colorado Bankruptcy Court, Summit has assets of between $1 million and $10 million and debt of between $10 million and $50 million.
Summit is based in Boulder, Colo.
CKE Restaurants Inc., the Franklin, Tenn.-based franchisor of Hardee’s and Carl’s Jr. brands, said Summit “expects to enter into an asset purchase agreement with a qualified and well-capitalized buyer, with a record of success across the restaurant, entertainment, food, beverage and retail markets. The buyer would acquire a majority of Summit’s remaining open and operating restaurants.”
It added that those restaurants which have not closed will continue to conduct business, including paying and providing benefits to employees, paying vendors and serving customers.
“CKE’s goal is to maintain the maximum number of stores continuing to operate, backed by a capital structure that is sustainable and poised for long-term growth and success, and we are working with all parties to achieve that goal,” it said.
According to the court filing, Summit is one of CKE’s largest franchisees. There are more than 2,100 Hardee’s locations nationwide.
Contact Bret Thorn at [email protected]