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

Chris SimsIndianapolis Star

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.

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The court documents for Miracle Restaurant Group state:

"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."

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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)
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