Denny's Franchisee Closes 5 Restaurants in MN and WI

M15 Inc., a franchisee operating Denny's restaurants, abruptly ceased operations at all five of its Minnesota and Wisconsin locations last week, as confirmed by Fast Company. The franchisee cited unsustainable debt, an inability to meet payroll, and difficulties in purchasing necessary supplies as reasons for the closures. M15 Inc. also indicated plans to file for Chapter 7 bankruptcy. A spokesperson for Denny's Inc. acknowledged the closures, expressing sadness and stating that the company is actively working with its franchise network to explore options for reopening the affected restaurants. Denny's Inc. anticipates providing an update on the situation in the coming weeks. The closures were initially reported by Bring Me the News, a Minnesota-based news outlet. According to the report, M15 Inc. informed its employees of the impending closure of all its Minnesota and Wisconsin restaurants, effective at 7:00 a.m. on September 3. The franchisee reportedly conveyed apologies for the outcome and expressed gratitude for the employees' service. A notice posted at one of the affected locations indicated that the company might not have sufficient funds to cover all outstanding and final payroll obligations. Employees with unpaid wages were advised to file a claim against M15 Inc. through the bankruptcy court. The specific Denny's locations that have closed include five establishments: three in Minnesota—255 Century Ave N, Maplewood, MN 55119; 12950 Aldrich Ave S, Burnsville, MN 55337; and 2045 Twin Lakes Pkwy, Roseville, MN 55113—and one in Wisconsin at 1000 Gateway Blvd, Hudson, WI 54016. Additionally, the North Branch, MN location at 38681 Tanger Dr is also impacted. Manny Trewn, identified as the franchisee group's representative, issued a statement to Fast Company expressing deep regret over the decision to close the five Denny's restaurants in Minnesota and Wisconsin. Trewn conveyed a hope that the locations might eventually be reopened. The financial distress leading to these closures highlights the challenges faced by some franchisees within the broader restaurant industry, particularly in the current economic climate. Denny's, a well-established diner-style restaurant chain, relies on its franchise partners to operate a significant portion of its locations. The company's response indicates a commitment to mitigating the impact on employees and customers, while also assessing the long-term viability of the affected sites.