A massive Florida business now files for an unexpected bankruptcy as the franchisee seeks to strengthen its operations.
Starboard Group, a Florida based restaurant operator, has placed its Wendy’s restaurants into bankruptcy protection.
The business operates 61 Wendy’s locations across the southeast, including Florida.
It also owns another 12 restaurant franchises, including Fuzzy’s Taco Shop, McAlister’s Deli, and Subway, unaffected by the bankruptcy filing.
“Placing the Wendy’s division in a Chapter 11 reorganization is the wisest decision we could have made in order to save jobs, strengthen the company and our partners for the future,” said Starboard Group CEO, Andrew Levy.
Starboard Group CEO Andrew Levy says the decision to file for bankruptcy was primarily due to increasing prices, high interest rates, and shifting consumer needs.
“In 2020, the franchise group had 100 restaurants but has been forced to close several recently and now operates 73,” reports Ash Jurberg.
“This year, three Burger King franchisees filed for Chapter 11…
Operators at Hardee’s, McDonald’s, and Popeyes also filed for bankruptcy.
Smaller food chains, including Clover Food Labs and Green District, have also filed for bankruptcy,” reports The-Sun.
Other Economy News Today
An essential retailer now announces painful layoffs as it aims to cut costs and “focus on other company priorities”.
Walgreens is cutting 5% of its corporate staff, which will equate to a whopping 267 jobs.
A Walgreen spokesperson says the job cuts are necessary in order to “streamline our operations and focus on our critical priorities.”
“None of these roles are based at our stores,” they said.
“These latest cuts follow a 10% reduction in Walgreens’ corporate workforce in May 2023,” reports RetailTouchPoints.
The essential retailer has faced a few challenges and bumps on the road, including:
- Paying a $230 billion settlement in May 2023 with the city of San Francisco over the retailer’s role in the opioid epidemic;
- In June 2023 Walgreens announced plans to close 150 U.S. stores and 300 Boots stores in the UK as part of cost-cutting efforts;
- Then-CEO Rosalind Brewer stepped down in September, replaced by Tim Wentworth in October; and
- WBA agreed in October 2023 to a $192.5 million settlement of a class-action lawsuit brought by shareholders claiming they were misled regarding Walgreens’ failed 2015 merger with Rite Aid.
Despite achieving sales of $139.1 billion, a 4.8% increase compared to the previous year, WBA had a net loss of $3.1 billion, down from net earnings of $4.3 billion during FY 2022.
The decrease was driven by a $5.5 billion after-tax charge for opioid-related claims during the period, reports RTP.
Rite Aid, which operates 2,330 stores across 17 states, requested on November 2nd to increase the number of stores to close to 179.
Customers have reported having issues with both companies transferring their medications to other local retailers.
This is a developing story.
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