"ARC Burger filed for Chapter 7 liquidation after closing all 77 Hardee's locations permanently in December, with liabilities estimated between $10 million and $50 million."
"The legal battle with Hardee's centered on $6.5 million in unpaid royalties, rent, and advertising fees, with Hardee's alleging ARC ceased payments in late 2024."
"ARC claimed it was sold a broken portfolio when it acquired the restaurants, discovering failing equipment and conditions that necessitated over $10 million in repairs."
"By mid-December, all 77 Hardee's locations were closed, resulting in more than 1,600 employees losing their jobs."
ARC Burger, the operator of 77 Hardee's locations, filed for Chapter 7 bankruptcy after permanently closing all restaurants in December. The filing indicates liabilities between $10 million and $50 million, with no expected recovery for unsecured creditors. The bankruptcy followed a legal dispute with Hardee's over $6.5 million in unpaid fees. Hardee's alleged ARC stopped payments in late 2024, while ARC claimed it inherited a failing portfolio, leading to over $10 million in unexpected repairs. By mid-December, all locations were closed, resulting in over 1,600 job losses.
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