Arby's franchisee Miracle Restaurant Group files Chapter 11 bankruptcy. Are stores closing? (2024)

Arby's franchisee Miracle Restaurant Group has once again filed for Chapter 11 bankruptcy and could sell multiple stores in three states, according to court documents.

Court documents show Chapter 11 bankruptcy was filed by Miracle Restaurant Group on June 20, 2024. The business was formed in 2005 and currently own and operates 25 Arby's restaurants across Illinois, Indiana, Louisiana, Mississippi and Texas.

Several restaurants have been filing for Chapter 11 bankruptcy or closing stores in 2024, including Red Lobster, Hooters, Tijuana Flats and Alamo Drafthouse to name a few.

Hooters closing 2024:Locations are closing; 2 restaurants near Louisville among dozens closed

The court documents for Miracle Restaurant Group state:

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"In September 2023, the Debtor sold three of its stores located in Indiana and used the proceeds to pay down its notes with First Franchise Capital Corporation (“FFCC”), the LH Mortgage, and the U.S. Small Business Administration (“SBA”). The Debtor’s remaining two stores in Indiana remain operating."

Additionally, stores in other states are also being impacted:

"The Debtor intends to continue to market and sell its seven Texas Stores, eight Illinois Stores and two remaining Indiana Stores through the Bankruptcy Process, and to focus on its Louisiana and Mississippi Stores. To accomplish this, the Debtor has retained Peak Franchise Capital, LLC as financial advisor to assist in marketing the Debtor’s stores."

CEO Donald Moore declined to answer questions about the bankruptcy when contacted by phone. In the filing, Moore notes he has "experience in senior officer roles at public and private restaurants since 1990."

Red Lobster closing 2024:Red Lobster lists 99 restaurants closed in 28 states: See locations closing in your state

Here's what to know:

Is Arby's filing for Chapter 11 bankruptcy?

No. Franchise operator Miracle Restaurant Group is filing for bankruptcy and owns 25 Arby's locations in Illinois, Indiana, Louisiana, Mississippi and Texas.

Who owns Arby's?

Arby's is owned by Inspire Brands. They own several restaurants including Baskin Robbins, Buffalo Wild Wings, Dunkin', Jimmy John's and SONIC.

Are Arby's restaurant locations closing via Miracle Restaurant Group's Chapter 11 bankruptcy?

No. Miracle Restaurant Group is attempting to sell the remaining locations in Illinois (8), Indiana (2) and Texas (7), according to court documents.

Has Miracle Restaurant Group filed for Chapter 11 bankruptcy previously?

Yes, this is Miracle Restaurant Group's second Chapter 11 filing. The franchisee used to own 60 Arby's franchise locations before filing for Chapter 11 bankruptcy in 2010, according to court documents. A number of stores were closed after the plan was confirmed and all creditors were paid in full under the plan.

Who did Miracle Restaurant Group sell Arby's locations to in Indiana?

AES Restaurant Grouppurchased three of the five Indiana locations owned by Miracle Restaurant Group.

What Indiana Arby's locations did AES Restaurant Group buy from Miracle Restaurant Group?

Here are the three Arby's locations that are now owned byAES Restaurant Group:

What Arby's restaurant locations could be closing in Illinois, Indiana and Texas?

Miracle Restaurant Group has not confirmed a list of store closings or which restaurants are being sold. Below is a list of locations posted on the website at mrgarbys.com/locations.htm. Three Indiana locations were sold in September 2023, but which stores were sold is unclear.

Arby's restaurants in Illinois related to Miracle Restaurant Group

Arby's restaurants in Indiana related to Miracle Restaurant Group

Arby's restaurants in Louisiana related to Miracle Restaurant Group

Arby's restaurants in Mississippi related to Miracle Restaurant Group

Arby's restaurants in Texas related to Miracle Restaurant Group

Chris Sims is a digital content producer for Midwest Connect Gannett. Follow him on Twitter:@ChrisFSims.

Arby's franchisee Miracle Restaurant Group files Chapter 11 bankruptcy. Are stores closing? (2024)

FAQs

Arby's franchisee Miracle Restaurant Group files Chapter 11 bankruptcy. Are stores closing? ›

An Arby's franchisee plans to sell 17 of its 25 restaurants after filing for Chapter 11 bankruptcy. A longtime Arby's franchisee that filed for bankruptcy in June called out low sales, tax refund delays and poor acquisition demand as it looks to reorganize the business.

Is Arby's in financial trouble? ›

The company plans to sell off several of its stores. Miracle Restaurant Group also filed for bankruptcy in 2010. Miracle Restaurant Group, a 25-unit Arby's franchisee, filed bankruptcy on June 20 after facing financial challenges exacerbated by the COVID pandemic.

Has Arby's filed bankruptcy? ›

Miracle Restaurant Group, which was formed in 2005, owns and operates 25 Arby's restaurants across the country, down from 60 locations when it first filed for bankruptcy in 2010. The franchisee filed for bankruptcy again at the end of June, according to court documents.

Is Arbys in Chapter 11? ›

Is Arby's filing for Chapter 11 bankruptcy? No. Franchise operator Miracle Restaurant Group is filing for bankruptcy and owns 25 Arby's locations in Illinois, Indiana, Louisiana, Mississippi and Texas.

Who owns the most Arby's franchises? ›

Bob Davis eventually became the franchisee of that location, and used the profits to open another Arby's, then another, then another. Today, the company Bob started, U.S. Beef Corp., owns more than 330 Arby's throughout the United States and plans to top 400 locations by 2022.

Who bought out Arby's? ›

Inspire Brands LLC is an American fast-food restaurant franchise company. Owned by Roark Capital Group, it owns the Arby's, Buffalo Wild Wings, Sonic Drive-In, Jimmy John's, Mister Donut, Dunkin' Donuts, and Baskin-Robbins chains, which have a combined 31,700 locations and US$30 billion in system sales.

What did Arby's get sued for? ›

The lawsuit accuses Arby's of violating the New York Deceptive Acts and Practices Act, breach of contract and unjust enrichment. Alongis claims that had he known the amount of meat in his sandwich would only contain half of what was advertised and would not have rare roast beef, he would not have purchased the meal.

Does Wendy's still own Arby's? ›

Wendy's/Arby's Group completed the $430 million sale of a majority interest in Arby's Restaurant Group to Roark Capital Group Monday, and changed its name to The Wendy's Company.

How much does an Arby's franchise make a year? ›

Average Revenue (AUV)

An Arby's franchised restaurant makes on average $1,263,000 in revenue (AUV) per year. This compares to $838,000 yearly revenue for similar restaurant sandwich franchises. Here is the extract from the FDD showing how much revenue Arby's franchised mature restaurant made on average in 2023.

What is Arby's discontinuing? ›

"For the past three years, Arby's fans have mourned the loss of their beloved Potato Cakes since they disappeared in 2021," the company said in a news release. "In the past year alone, Potato Cakes have been mentioned more than 10,000 times on social media, with loyalists issuing passionate pleas for their revival."

What was Arby's old name? ›

They wanted to call their restaurants "Big Tex", but that name was already used by an Akron business. Instead, they chose the name "Arby's," a phonetic pronunciation of the letters R and B, short for "Raffel brothers".

Is Arby's doing well financially? ›

Arby's system sales increased 1.8% in 2023, according to the Technomic Top 500 Chain Restaurant Report. The system closed a net of two locations last year, finishing 2023 with 3,413. Miracle Restaurant Group sold three stores in Indiana to pay down some debt.

What state eats the most arby's? ›

It's no surprise that Ohio is still the restaurant's No. 1 fan, with a whopping 277 locations scattered across the state. After Ohio, Michigan, Indiana, Florida, Texas, and Georgia lead the list, each with over 150 Arby's franchises.

Who is Arby's biggest competitor? ›

Arby's Restaurant competitors include McDonald's, Carl's Jr, Jack in the Box, Burger King and Dunkin'. Arby's Restaurant ranks 2nd in Employee Net Promoter Score on Comparably vs its competitors.

Does Arby's still make money? ›

Arby's system-wide sales reached approximately 4.54 billion U.S. dollars in 2022, up from 4.46 billion the previous year.

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