Carl’s Jr., known as Hardee’s everywhere but the West Coast, just closed nearly 100 locations across 8 states.
Hardee’s had a rather challenging end of 2025 after one of its franchisees announced it was closing 77 restaurant locations.
The restaurant closures affected approximately 1,600 employees. Workers lost their jobs just days before Christmas.
But the latest updates in 2026 show the franchisee company ARC Burger filed for Chapter 7 bankruptcy back in April.
That’s when a major dispute between Hardee’s and ARC burger left nearly 2,000 employees caught in the crossfire.
Court filings and company statements show the operator fell behind on payments, including royalties and other contractual fees.
Unable to resolve its debt issues, Hardee’s said it would terminate the franchised locations.
The lawsuit was messy. Hardee’s sued ARC Burger in November 2025, a month before the Chrismas holiday.
Hardee’s seeked roughly $6.5 million in unpaid royalties, rent, and advertising fees it said had been accruing since December 2024.
Which Hardee’s Locations Closed?
Business News – Carl’s Jr. (Hardee’s) Just Closed Nearly 100 Locations in 8 States.
The following eight states were affected:
Alabama
Florida
Georgia
Illinois
Missouri
Montana
South Carolina
Wyoming
In these 8 states, roughly 1,600 employees lost their jobs.
And for customers, of course it means longer drives to their next closest Hardee’s location.
But it’s not all bad news. As of today, some of these locations are making a major comeback under corporate management.
For example, South Carolina has had the most complete recovery of any affected state.
Six of the eight have reopened as corporate-run restaurants, according to the chain.
The two that haven’t are the Savannah Highway location in Charleston, which closed permanently in December, and the longtime Georgetown store.
Missouri is one of three states where Hardee’s has confirmed reopenings.
“The former ARC location in Cuba is back under corporate ownership, and the company has said additional Missouri sites are part of its reopening plan,” said Finance Buzz.
And in Georgia, Fast Company identified a total of five former ARC locations currently under Hardee’s corporate ownership and hiring.
Hardee’s Closures May Recover with Time
The closure of 77 Hardee’s restaurant locations was a massive shock to its nearly 2,000 employees that lost their jobs.
And while corporate locations have begun to reopen in 2026, a full recovery will take time.
But Hardee’s isn’t the only famous fast-food chain that has experienced mass closures across the states.
Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is a legal process designed to help individuals and businesses eliminate most of their debts while…
