Business Isn't Looking Good For Hardee's After Major Store Closures

For fans of the once-popular fast food franchise Hardee's, you may want to get your fill before it's too late. Summit Restaurant Holdings has been a large franchisee of the burger chain that has been serving scrumptious meals since opening its doors more than 60 years ago. However, after closing 39 of the 145 locations under its umbrella of businesses, the company has filed for Chapter 11 bankruptcy, according to Restaurant Business. The reason for filing for bankruptcy can be pinned down to the struggles the industry faced during the global pandemic of the last few years. With shutdowns and restrictions, many of the chains could not perform up to their usual standards and struggled to ensure a profit and keep afloat while balancing the rising costs of food, shipping, and labor.

But what does this mean for folks who still want some tasty treats from the Hardee's menu such as a BLT or some handmade biscuits from one of their over 1,800 locations around the United States and other selected countries? Well for now, the parent company of Hardee's — CKE Restaurants Holdings — has assured hungry patrons that other locations will continue with business as usual.

With the buzz about the announcement of Summit Restaurant Holdings filing for Chapter 11, and the recent news of Hardee's locations closing in Atlanta, Kansas, and Missouri, according to the Franchise Times, some might be wondering about the fate of other franchises under the ownership of the company. These include multiple Carl's Jr. locations as well as numerous Burger Kings, some of which filed for bankruptcy earlier this year, as per Restaurant Business.

It seems as though Summit Restaurant Holdings will have other investors looking to swoop in as Chapter 11 court auction proceedings take place. In a release, CKE Restaurants Holdings said that the potential party's interest is from a "qualified and well-capitalized buyer, with a record of success across the restaurant, entertainment, food, beverage and retail markets." It also stated that "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."