Second Bankruptcy for Louisiana’s Miracle Restaurant Group Due to Economic Pressures
Miracle Restaurant Group LLC, a prominent Arby’s franchisee based in Louisiana, has filed for Chapter 11 bankruptcy protection for the second time. The company, which operates 25 Arby’s locations across Illinois, Indiana, Texas, Mississippi, and Louisiana, cited unsustainable inflation of commodities and labor expenses as primary reasons for the filing.
In documents submitted to the United States Bankruptcy Court of the Eastern District of Louisiana, company manager Donald Moore explained that price increases were insufficient to offset rising costs. “This resulted in significant erosion in the variable cash earned from operations to cover the fixed costs of rent and debt service,” Moore stated. Despite selling three Indiana locations in September 2023 to pay down debt, the company struggled to sell other locations in Texas, Illinois, and Indiana due to declining earnings.
Additionally, Miracle’s working capital has been hampered by delays in receiving $3.5 million in Employee Retention Tax Credits. These delays affected the company’s financial stability, as the refunds were requested for the quarters ending March 31, 2021, through September 30, 2021.