Hardee’s franchisee Superior Star files for bankruptcy

HILLSBORO — 60 Hardee’s locations are at risk, including a location in Hillsboro, following a Chapter 11 bankruptcy filing last week in Kentucky.

Superior Star filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code on Thursday, July 9. The filing was in the Western District of Kentucky in the U.S. Bankruptcy Court in Louisville, Kentucky

According to court documentation, Superior Star would generate approximately $80 million in gross revenue in 2025. However, “unforeseen and uncontrollable circumstances” have kept the company from being consistently profitable. The company has between $10 million and $50 million in combined assets and liabilities

Documents state that Superior Star purchased the restaurants in 2023 for $13 million, spending an additional $4 million to improve and support operations.

The company claims that various omissions and/or misrepresentations by the seller forced Superior Star to “absorb extensive and unforeseen deferred maintenance and repair expenses, unpaid taxes, and other latent liabilities.”

The company also cites the aging of the franchise buildings, reduced demand, and increasing food costs as issues in the filing.

Liabilities and delinquent bills

Superior Star was also delinquent on payment of some state sales taxes in certain locations, resulting in the taxing authorities levying against their bank accounts, which they say caused a severe strain on the debtor’s cash flows.

In the instance of the Hillsboro location, several area businesses and two governmental entities are listed as creditors owed money by Superior Star. Among the creditors listed in the filing are:

• Montgomery County: Montgomery County Government
• Hillsboro: City of Hillsboro, Hiller’s Sheet Metal, Hillsboro Electric, Journal Publications, Meyer Ice Machine, Randle Lawn Care, Vogel Plumbing
• Litchfield: R&R Vision Glass, Off the Top Tree Service, ECHH Mowing, Dan Heise Plumbing
• Irving: Yount Landscaping

It was not specified how much Superior Star owes to these parties. However, this could very well be the same case with existing and former locations.

The filing says that Superior Star believes that it “can emerge as an operationally and financially durable enterprise, with the ability to employ people, pay taxes and otherwise be a productive corporate citizen for years to come.”

Store closures started last year

Superior Star started closing locations in November and December 2025, according to a report from Fast Company. In that report, nine locations in Illinois and two in Missouri were among the initial 30 stores to close. In addition to Illinois and Missouri, these closures would also impact operations in Indiana, Iowa, Kentucky, Minnesota, North Dakota, and Ohio.

It is not currently known whether further closures are in Superior Star’s future. However, that may depend on how the Chapter 11 proceedings go.

ARC Burger’s bankruptcy

This news follows the closure of 77 locations owned by the franchisee ARC Burger in December 2025, after Chapter 7 proceedings.

Hardee’s, owned by the privately held CKE Restaurants, started reopening 25 locations earlier this year as corporate-held locations. Among them is a location in Cuba, Missouri. It is part of a plan to reopen 40 closed locations from the ARC Burger bankruptcy closures as corporate stores.

Hardee’s has 1,485 total locations, of which 1,287 are franchised locations.

Jake Leonard, Executive Editor-In-Chief

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Jake Leonard, a broadcast media and journalism veteran, is the editor-in-chief of Heartland Newsfeed. Leonard is also GM and program director of Heartland Newsfeed Radio Network, wrestling editor and contributing writer for Ambush Sports, a contributing writer for My Sports Vote and Midwest Sports Network, and a former contributor to Bleacher Report and Overtime Heroics. He resides at home in Nokomis, Ill. with his dog Buster.

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