Burger King franchisee Meridian Restaurants Unlimited (Meridian) has divested 70 of its restaurants after declaring bankruptcy earlier this month.

QSR Magazine has reported that the franchisee is said to have divested the majority of its stores out of bankruptcy months after filing for court proceedings due to pressures created by the Covid-19 pandemic.

Meridian, which is said to be one of the largest franchisees of the Burger King brand, blamed its bankruptcy on increased wages, labour costs, shipping, food inflation, decreased availability of staff and declining food traffic.

When it filed for bankruptcy in March, it operated 120 restaurants.

During the auction, which took place this month, the franchisee had 91 restaurants, of which Burger King acquired 32 restaurants.

The remaining 38 stores were purchased by other franchisees, including Kansas King, Dakota Restaurant Partners, Kraf and Snake River Foods. The stores were divested for a sum of $17m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Burger King acquired restaurants in Utah, Montana and Wyoming. Kansas King purchased restaurants in Kansas and Nebraska.

Dakota Restaurant Partners bought 12 restaurant outlets located in Minnesota, Montana and North Dakota. Kraf purchased seven restaurant units in Arizona.

Snake River Foods acquired three restaurants in Montana.

Meridian is said to have also filed a motion requesting the court to permit the divesture of the remaining 21 outlets,