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Seventy-seven Hardee\u2019s restaurants are officially gone, and the franchisee behind them filed for bankruptcy this week. ARC Burger, the private equity-backed operator that ran the locations across nine states, filed for Chapter 7 liquidation<\/a> on Monday after closing all its restaurants permanently in December. The filing shows liabilities between $10 million and $50 million, and the company doesn\u2019t expect any recovery for unsecured creditors.<\/p>\n The collapse followed a legal battle with Hardee\u2019s over $6.5 million in unpaid royalties, rent and advertising fees. Hardee\u2019s sued in November 2025, alleging ARC stopped paying in late 2024. ARC fired back in March, arguing it was sold a broken portfolio when it acquired the restaurants out of bankruptcy in 2023. The company claimed it discovered failing equipment and deteriorating conditions that forced more than $10 million in unplanned repairs.<\/p>\n Hardee\u2019s rejected those claims, pointing to ARC\u2019s payment failures as the primary problem. By mid-December, all 77 locations were closed and more than 1,600 employees were out of work.<\/p>\n<\/p><\/div>\n Seventy-seven Hardee\u2019s restaurants are officially gone, and the franchisee behind them filed for bankruptcy this week. ARC Burger, the private equity-backed operator that ran the locations across nine states, filed for Chapter 7 liquidation<\/a> on Monday after closing all its restaurants permanently in December. The filing shows liabilities between $10 million and $50 million, and the company doesn\u2019t expect any recovery for unsecured creditors.<\/p>\n The collapse followed a legal battle with Hardee\u2019s over $6.5 million in unpaid royalties, rent and advertising fees. Hardee\u2019s sued in November 2025, alleging ARC stopped paying in late 2024. ARC fired back in March, arguing it was sold a broken portfolio when it acquired the restaurants out of bankruptcy in 2023. The company claimed it discovered failing equipment and deteriorating conditions that forced more than $10 million in unplanned repairs.<\/p>\n Hardee\u2019s rejected those claims, pointing to ARC\u2019s payment failures as the primary problem. By mid-December, all 77 locations were closed and more than 1,600 employees were out of work.<\/p>\n<\/p><\/div>\n