If you thought 2025 was a rollercoaster of going-out-of-business sales and restaurant failures, buckle up for 2026, because it’s already off to an inauspicious start. A number of big businesses have already filed for bankruptcy this year, and that trend is expected to continue throughout the year. Here’s a running list of companies that have already declared bankruptcy in 2026, and what it might mean for you.
ARC Burger, Hardee’s Franchisee
ARC Burger, a Hardee’s franchisee that runs 77 locations across 9 states, filed for bankruptcy in April. It comes amid a legal battle with Hardee’s, which sued ARC Burger in November 2025 for $6.5 million in unpaid royalties, rent, and other fees. By December, Hardee’s terminated the franchisee, and all 77 locations closed. Unlike many bankruptcies that are for the purpose of restructuring a business, this one seems like a final farewell to these Hardee’s locations.
QVC Group
The QVC Group, which operates the HSN and QVC shopping channels, filed for bankruptcy protection in April. The company’s goal is to reduce its debt from $6.6 billion to $1.3 billion, according to a press release about the filing. In 2025, revenue dropped 9% from the previous year because of a number of factors, including tariffs and people shifting their shopping onto social media platforms like TikTok. Both QVC and HSN shopping channels will continue airing as usual during the bankruptcy process.
801 Restaurant Group
The parent company of 801 Chophouse, a small chain of upscale steakhouses primarily in the Midwest, filed for bankruptcy in April. Its financial woes are primarily the result of the abrupt closures of two other restaurants in the group, 801 Fish in Denver and 801 On Nicollet in Minneapolis. All 801 Chophouse locations are expected to continue operating normally during the bankruptcy process, which will help the company restructure its debts and business.
Friendly Franchisees Corporation, Carl’s Jr. Franchisee
A large Carl’s Jr. franchisee filed for bankruptcy protection in early April. Friendly Franchisees Corporation operates 65 locations of the restaurant in California, making it the largest franchisee in that state. Though no specific reason for the dire financial situation was given in court filings, a spokesperson for Carl’s Jr. says that it is limited to this franchisee’s situation, and “has no impact on the operations of any other Carl’s Jr. locations.”
Neighborhood Restaurant Partners Florida, Applebee’s Franchisee
A Florida Applebee’s franchisee filed for Chapter 11 bankruptcy protection in late March. Neighborhood Restaurant Partners Florida owns 53 Applebee’s locations in Florida, Georgia, and Alabama, and already closed 9 restaurants in 2025. The company attempted to find a buyer for its locations last year, but failed to do so. Some locations remain profitable, but some are not. There is no word yet on whether any of the locations will be closing, but Applebee’s plans to acquire the remaining restaurants, according to the bankruptcy filings.
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Saks Global
Saks Global — the parent company of Saks 5th Avenue, the discount chain Saks Off 5th, and Neiman Marcus — filed for bankruptcy in mid January after missing payments and letting debt stack up for a while. The company announced that it was closing almost all Saks Off 5th locations in order to focus on its full-price luxury brands. Many locations are already closed, but some may still be holding store-closing sales if you want to grab some cheap designer goods.
Fat Brands
Fat Brands and related company Twin Hospitality both filed for bankruptcy at the end of January. Combined, the companies own 17 different restaurant chains across the country, including Fatburger, Round Table Pizza, Twin Peaks, Ponderosa, Johnny Rockets, and Fazoli’s. The company has been in trouble for a while, including a years-long federal investigation into the current CEO for tax fraud and money laundering. While the company is continuing to operate the chains during the bankruptcy process, we wouldn’t be surprised if some of them end up closing all together.
Sailormen Inc., Popeyes Franchisee
One large Popeyes franchisee filed for bankruptcy at the end of January, signaling that things might not be so great for the fast-food giant as a whole. Sailormen is based in Miami, and operates over 130 Popeyes restaurants, mostly in Florida and Georgia. The company cited inflation and changing customer habits after the pandemic as reasons for its debt. So far, none of the Sailormen-owned locations have announced closures.
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Francesca’s
Longtime mall staple Francesca’s is doing things in a different order than usual: The company announced that it was holding liquidation sales and closing stores in January, and then it filed for bankruptcy in February. In court filings, the chain revealed that the majority of its sales come from physical stores, and well, we all know that malls are dying (or already dead). If you have one nearby, you should be able to score some good deals during the store-closing sales right now.
Catalyst Brands, Operator of Eddie Bauer Stores
The company that runs Eddie Bauer stores and outlets in the U.S. filed for bankruptcy in February, citing declining sales as the main reason for its problems. The company is hoping to find a buyer for the business during the bankruptcy process, but if that doesn’t happen, then all of the U.S. stores will be closed.
