Four Wendy’s company owned and operated stores have closed, as the administration of the ice cream and hot dog chain’s former master franchisor continues.
Administrators Ferrier Hodgson held the first meeting of creditors for Wendy’s Supa Sundaes on July 14, following the appointment of Martin Lewis and Tim Mableson as voluntary administrators at the start of July.
In a statement released following the meeting, the administrators confirmed 141 Wendy’s franchises have been assigned to the current licensee of the Wendy’s brand, Supatreats Australia.
The administrators believe another 34 Wendy’s franchises may no longer be licensed to use the Wendy’s intellectual property but said Supatreats Australia is liaising directly with some of these stores to in relation to finalising new franchise agreements.
The administrators said four company-owned and operated stores have closed but did not disclose the location of the stores.
Ferrier Hodgson also revealed creditors of Wendy’s Supa Sundaes have to date submitted proofs of debt that total almost $9 million. The administrators expect that sum to increase as more information about the company becomes known.
“It’s too early to provide an accurate assessment of the financial position of Wendy’s Supa Sundaes Pty Ltd or an estimate of any potential return to creditors,” said Ferrier Hodgson partner Martin Lewis in the statement.
“We will continue to work through the financial affairs of Wendy’s Supa Sundaes Pty Ltd over the next few weeks and provide a report and our recommendations to creditors for them to decide the company’s future.”
A second meeting of creditors is scheduled to be held on August 6.
Supatreats Australia, which took over the Wendy’s licence in the second half of 2014, told SmartCompany earlier this month the administration of Wendy’s Supa Sundaes will not affect the chain’s current operations.
However, Wendy’s franchisees were told in a letter on July 1 Wendy’s Supa Sundaes had been placed in voluntary administration because the Wendy’s brand “was under threat”.
“The decision to place the company into voluntary administration was taken because the company was unable to resolve a range of legacy issues, which arose under previous management and ownership, and because it had recently come to the attention of the current management of the company that its business has been severely compromised and the integrity of the Wendy’s brand was under threat,” the company said.