Seventy-seven Hardee’s restaurants are officially gone, and the franchisee behind them filed for bankruptcy this week. ARC Burger, the private equity-backed operator that ran the locations across nine states, filed for Chapter 7 liquidation on Monday after closing all its restaurants permanently in December. The filing shows liabilities between $10 million and $50 million, and the company doesn’t expect any recovery for unsecured creditors.
The collapse followed a legal battle with Hardee’s over $6.5 million in unpaid royalties, rent and advertising fees. Hardee’s sued in November 2025, alleging ARC stopped paying in late 2024. ARC fired back in March, arguing it was sold a broken portfolio when it acquired the restaurants out of bankruptcy in 2023. The company claimed it discovered failing equipment and deteriorating conditions that forced more than $10 million in unplanned repairs.
Hardee’s rejected those claims, pointing to ARC’s payment failures as the primary problem. By mid-December, all 77 locations were closed and more than 1,600 employees were out of work.
Seventy-seven Hardee’s restaurants are officially gone, and the franchisee behind them filed for bankruptcy this week. ARC Burger, the private equity-backed operator that ran the locations across nine states, filed for Chapter 7 liquidation on Monday after closing all its restaurants permanently in December. The filing shows liabilities between $10 million and $50 million, and the company doesn’t expect any recovery for unsecured creditors.
The collapse followed a legal battle with Hardee’s over $6.5 million in unpaid royalties, rent and advertising fees. Hardee’s sued in November 2025, alleging ARC stopped paying in late 2024. ARC fired back in March, arguing it was sold a broken portfolio when it acquired the restaurants out of bankruptcy in 2023. The company claimed it discovered failing equipment and deteriorating conditions that forced more than $10 million in unplanned repairs.
Hardee’s rejected those claims, pointing to ARC’s payment failures as the primary problem. By mid-December, all 77 locations were closed and more than 1,600 employees were out of work.
