Denny’s has closed five more restaurants in Minnesota and Wisconsin after the franchisee operating the locations faced severe financial difficulties and announced plans to file for Chapter 7 bankruptcy.
The closures affect four restaurants in Minnesota and one in Wisconsin. The affected locations were operated by M15 Inc., which reportedly accumulated unsustainable debt and said it could no longer maintain normal operations. The company said it had borrowed substantial amounts of money over the past year and was no longer able to meet payroll or purchase food and other necessary supplies.
Employees were notified shortly before the closures took effect on September 3, 2026. The sudden shutdowns left workers without jobs and raised concerns about outstanding wages and other financial obligations as M15 prepares for a Chapter 7 bankruptcy filing.
The five restaurants were located in Maplewood, Burnsville, Roseville and North Branch in Minnesota, along with a location in Hudson, Wisconsin. Denny’s confirmed the closures and said it is working with its franchise network to explore possible ways to reopen as many of the restaurants as possible.
The latest shutdowns add to a broader period of restaurant closures for Denny’s. The company has closed roughly 150 underperforming locations during 2024 and 2025, bringing the total number of closures over the past several years to about 155. Denny’s previously said its strategy was aimed at eliminating lower-performing restaurants and improving average sales at the remaining locations.
Despite the closures, Denny’s is continuing efforts to reshape its business. The company is pursuing a turnaround initiative known as Project Grand Slam, which focuses on modernizing restaurants and strengthening the customer experience. Denny’s also launched a national catering program this summer as part of efforts to create additional revenue and increase sales during slower daytime periods.
The company changed ownership earlier this year in a $620 million deal involving private equity firms TriArtisan Capital Advisors and Treville Capital Group, along with franchisee Yadav Enterprises. Denny’s also appointed Christopher Bode as CEO after Kelli Vallade stepped down in April.
For customers in Minnesota, Denny’s still lists eight operating restaurants, including locations in Apple Valley, Blaine, Bloomington, Otsego, Rochester, Rogers, St. Paul and West St. Paul.
Denny’s said it remains focused on the future of the brand and hopes to find opportunities to bring some of the closed restaurants back under new ownership. However, the company acknowledged that reopening the affected locations will take time and that there are no guarantees.
The closures highlight the financial pressure facing restaurant franchisees, where rising operating costs, debt obligations and weaker sales can quickly make individual locations difficult to sustain. For the workers and longtime customers affected in Minnesota and Wisconsin, the sudden shutdowns mark the end of several community-based Denny’s restaurants while the company works to determine what comes next.
Source: finance.yahoo
The 2DayBulletins Editorial Team publishes accurate, timely, and well-researched news and articles across Trending Topics , Business and Finance , Politics, Entertainment, Sports, Technology, Health, with a focus on delivering reliable information to readers.