ARC Burger LLC, a major Hardee’s franchisee, filed for Chapter 7 bankruptcy liquidation on April 20, 2026, in the U.S. Bankruptcy Court for the Northern District of Georgia. The Marietta-based company faced over $29 million in debt and a breach-of-contract lawsuit from its franchisor, leading to the closure of 77 restaurant locations.
The debtor’s filing follows a period of significant financial turbulence for several national burger brands. Wendy’s recently announced plans to shutter approximately 292 to 350 underperforming domestic units during 2026, representing about 5% to 6% of its U.S. footprint.
“By closing consistently underperforming restaurants, we are…