Hardee’s closes dozens of stores in eight states
Hardee’s is closing multiple stores in eight states, citing financial issues with its franchisees. ARC Burger is facing a lawsuit over missed payments.
A Hardee’s franchisee with more than a dozen stores in Kentucky filed for bankruptcy last year after closing more than 30 stores.
Hardee’s franchisee Superior Star LLC filed for Chapter 11 bankruptcy protection on Thursday, July 9, according to court documents reviewed by USA TODAY. The company said it owed money to more than 1,000 creditors and had assets and liabilities of between $10 million and $50 million. As of July, the company operated 59 Hardee’s stores in 10 states, including 14 in Kentucky, according to documents.
The company had total revenue of $80 million in 2025, but franchisees said it was still not enough for the owners to have a profitable year.
Superior Star is not the only franchisee to file for bankruptcy. Franchisee ARC Burger filed in 2025, citing financial difficulties, and closed 77 locations, USA TODAY Network’s Tallahassee Democrat reported. Hardee’s has since reopened some closed stores in Georgia, South Carolina and Missouri, which it said are “now under corporate ownership.”
Here’s what we know about Hardee’s closure and latest bankruptcy filing.
Why did Hardee’s franchisees file for bankruptcy?
Superior Star said in its bankruptcy filing that it was “struggling with unanticipated and uncontrollable circumstances that have prevented (the company) from achieving consistent profitability.”
The company also cited reduced demand, higher food costs across the industry, and sales tax arrears that led to levies on bank accounts.
Superior Star acquired 103 Hardee’s restaurants from another franchisee, Starcorp LLC, in December 2023 for $13 million, according to court documents. The seller withheld information about the restaurant that cost the new owners millions of dollars in repairs, unpaid taxes and other costs, according to the Superior Star.
The franchisee also cited an “aging” building, which it claims could be causing customers to avoid visiting the fast food restaurant. Superior Star continued in its bankruptcy filing that the building’s condition created an “unattractive invitation to potential customers.”
In court documents also reviewed by USA TODAY, Starcorp said Superior Star had the opportunity to inspect the restaurant but chose not to.
“Debtor’s bankruptcy was not caused by any alleged breach of contract or misrepresentation by Starcorp,” Starcorp wrote.
USA TODAY contacted Superior Star and StarCorp on July 16 for comment on the previous closures, the potential closure in 2026, and the status of the restaurant.
Hardee’s said in a statement to USA TODAY on July 16 that it was aware of the franchisee’s closure.
“Superior Star’s application decision is based on the company’s specific financial and business circumstances,” Hardy’s said in a statement. “We remain focused on strengthening Hardee’s systems and providing a quality experience for our guests.”
Franchisees closed more than a dozen stores in one state last year.
Superior Star closed several stores in mid-to-late 2025 to cut costs, according to court documents.
The company announced that it had closed several underperforming stores. Superior Star said it saved some money by closing, but it has reached an agreement with some landlords and Hardee’s to continue paying rent after the restaurant closes.
Superior Star called the rent payments “dark site costs” and said the agreement did not resolve the company’s financial woes.
Last year, the state with the highest number of Hardee’s store closures was Illinois. The franchisee closed nine stores in the Prairie states, according to documents.
Here’s a complete list of states where franchisees closed stores last year:
- Illinois (9 locations closed) – Anna, Benton, Centralia, Danville, Marion, Mattoon, Ottawa, Paris, Springfield.
- Minnesota (6 closures) – Fairmont, Mankato (2 closures), Marshall, Sleepy Eye, Willmar
- Iowa (4 closures) – Le Mars, Sioux City (2), and Spencer.
- Kentucky (3 closures) – Elizabethtown, Louisville, Paducah.
- Indiana (2 closures) – North Vernon and Madison.
- Missouri (2 locations closed) – Fredericktown and Sikeston.
- North Dakota (2 closures) – Fargo and West Fargo
- Ohio (2 closures) – Columbus and Middletown
Contributor: CA Bridges, USA TODAY Network
Saleen Martin is a reporter on USA TODAY’s Trends team. She is from Norfolk, Virginia (757). Email sdmartin@usatoday.com.
