A POPULAR fast-food chain has suddenly closed one of its locations after filing for bankruptcy.
A Hardee's Location in Dubuque, Iowa, closed on Tuesday.
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The marquee read closed at the restaurant located at 420 Rhomberg Ave.
A note on the front door thanked guests and patrons for their business, reports local news outlet the Telegraph Herald.
Diners can visit the other location in the city located at 2100 Twin Valley Drive.
This comes after one of Hardee's main franchisees filed for bankruptcy.
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Summit Restaurant Holdings operated 145 Hardee's locations across several states including Florida, Alabama, Montana, and Georgia.
It closed 39 restaurants, and the rest were bought on Tuesday by High Bluff Capital, according to a press release.
Max Wetzel, the chief executive officer of CKE, Hardee's parent company, said High Bluff would be able to pursue investments in remodeling and other initiatives designed to increase sales.
Summit attributed its financial issues to rising transport costs, food, and labor costs, and rent obligations.
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CLOSING TIME
Several fast-food restaurants are facing similar challenges.
In May, Burger King announced it could be closing 400 locations this year.
Locations that are unable to meet sales goals will be asked to shut down in the coming months.
Officials from the restaurant's parent company, Restaurant Brands International, said the closures were being planned to protect the brand from further damage.
"There will always be a minority who aren't dedicated enthusiastic operators, and that's OK," Doyle said during RBI's first quarter earnings call.
"We'll work with them to leave the system and move on to do something else. There simply is no room for franchisees who are not willing or able to work hard to operate restaurants that are better than the system average over the long term."
Two Burger King franchisees declared bankruptcy, leading to more than 27 restaurants closing.
Subway has closed over 1,000 locations in recent years amid ongoing financial struggles.
A location in Connecticut had to close after operating for 10 years.
"Sorry, we have closed," a sign outside the Elmfield Subway location read.
"Due to the tough times in our economy, we are not able to sustain the expenses at this location."
Rumors have been swirling about a possible sale of the company.
The Wall Street Journal reported JPMorgan was advising Subway and conducting a sale exploration process.
The company is reportedly valued at over $10billion.
"The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience," Subway said in a statement.
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Pizza Hut recently closed three branches in one state.
Plus, see the five Starbucks locations that have closed down.
