Another fast-food franchisee has filed for bankruptcy, becoming the latest casualty of mounting financial pressures squeezing restaurant operators across the United States.
Global Midsouth Holding Corp., a franchisee of Checkers and Rally's, filed for Chapter 11 bankruptcy protection on October 28, just one day before a scheduled foreclosure auction involving one of its Tennessee restaurant properties, according to TheStreet.
The Memphis-based company reported $1.9 million in assets against $1.3 million in liabilities. Revenue fell from $860,000 in 2024 to $800,000 in 2025, underscoring the financial difficulties facing the business.
However, Global Midsouth isn't the only burger franchisee that went bust.
Meritage Hospitality Group, one of Wendy's largest franchisees, filed for bankruptcy in September after struggling with declining sales, rising beef prices, and mounting financial obligations.
The operator, which ran 314 Wendy's restaurants across 15 states when it filed, had already shuttered 60 underperforming locations. Another 60 restaurants could shut down by mid-November, according to court documents.
The bankruptcies come as the restaurant industry faces even bigger problems.
As we reported yesterday, San Diego-based Out West Restaurant Group, also known as Cerca Trova Restaurant Group, filed for Chapter 11 bankruptcy protection Monday in Delaware, putting 61 restaurants across five Western states into bankruptcy proceedings.
The company's debt has exploded from $269 million in 2020 to approximately $449 million in 2026, according to the Los Angeles Times.
"Guest traffic and earnings continued to decline, while food, labor, and other production costs continued to rise," CEO David Goronkin said.
California's rising minimum wages have been a major problem, with more than half the company's employees working in the Golden State. The COVID-19 pandemic also delivered another devastating blow, sending revenue plunging approximately 35%.
Outback parent company Bloomin' Brands said that it is preparing to swoop in. The restaurant giant has offered $26.3 million to acquire the struggling franchisee's assets, alongside up to $5.5 million in emergency financing. "This is an isolated situation involving the franchisee," a Bloomin' Brands spokesperson said. The 61 restaurants are expected to remain open during bankruptcy proceedings.