Big Wendy’s Franchisee Files for Bankruptcy Amid Fast-Food Pain

A Wendy’s franchisee that runs dozens of the fast-food restaurants in the southeastern US went bankrupt this week after suffering through Covid-19 and losing money on a failed expansion in Brazil.

SBG Burger Opco LLC and other affiliates of Starboard Group filed for Chapter 11 protection on Tuesday after shutting down several unprofitable locations, court papers show. It may shut more money-losing locations in bankruptcy.

The bankruptcy filing allows the company to keep operating while working out creditor repayment terms.

The company joins a string of fast-food franchisees that have suffered losses since the pandemic. Like others, higher interest rates ...