Boulder owner of 108 Hardee’s files for bankruptcy

A Boulder-based constellation of 108 Hardee’s restaurants has gone bankrupt.

Six LLCs that are part of Capstone Restaurant Group filed for Chapter 11 bankruptcy protection May 4 and recently closed 39 of their 147 Hardee’s locations, bankruptcy filings show.

“Together, the debtors constitute one of the largest current franchisees of Hardee’s restaurants,” said Daniel Dooley, a financial advisor to the companies, in an affidavit May 4.

The companies, headquartered at 7490 Clubhouse Road in Boulder, employ 2,250 people across eight states, most of them part time, according to their bankruptcy paperwork. The companies have $1 million to $10 million in assets but owe north of $28 million.

No company is owed more than their primary lender, Cadence Bank, which lent them $21.5 million in late 2020 and is now owed $22.1 million, plus interest. Another $6 million is owed for franchise payments and rent at the 108 stores, according to Dooley.

“As a result of the COVID-19 pandemic, franchisees system-wide have experienced declining foot traffic…resulting in declining revenue without proportionate decreases in rental obligations, debt service and other liabilities,” he claimed in his affidavit last week.