US-based restaurant operator Meritage Hospitality Group has filed for voluntary Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Western District of Michigan, seeking to reorganise its balance sheet and establish a sustainable capital structure.

The company operates 314 Wendy’s outlets, one Bojangles restaurant, and five proprietary concepts across 15 US states.

The filing follows an assessment of financial pressures affecting Meritage, including sustained challenges across Wendy’s system.

According to a company statement, since most of Meritage’s restaurants operate under Wendy’s brand, those pressures have significantly affected the company’s financial position.

However, the company leadership nonetheless maintains confidence in the brand's recovery prospects.

The bankruptcy filing follows more than a year of discussions between Meritage, its lending partners, and its franchisor.

Following talks, the board and management decided a court-supervised restructuring was the best way to address financial pressures and protect stakeholder interests.

Meritage plans to maintain normal restaurant operations throughout the reorganisation.

The company is lodging standard "first day" motions with the court to obtain authorisation to continue providing wages and benefits to its approximately 9,000 employees without disruption.

The statement added: “The company also intends to continue honouring its commitments to guests and to pay suppliers and vendors in the ordinary course for goods and services provided on or after the filing date.”

To sustain its liquidity needs during the restructuring, the operator is arranging debtor-in-possession (DIP) financing.

Meritage anticipates that this facility, combined with ongoing operating cash flow, will sufficiently fund trading obligations through the Chapter 11 process.