Denny’s has closed five more restaurants, four in Minnesota and one in Wisconsin, as the franchisee behind them plans to file for Chapter 7 bankruptcy.
Franchisee M15 Inc. said it has accumulated unsustainable debt, according to Fast Company. The closures add to 150 Denny’s restaurants already shuttered in 2024 and 2025.
The Spartanburg, S.C.-based diner chain confirmed the closures. It said it was “working with urgency alongside our franchise network to explore every viable path to reopen as many of these restaurants as we can.”
The bankruptcy filing
M15 Inc. operates the five newly closed locations. The company’s plan to file for Chapter 7 bankruptcy is a standard process for businesses unable to pay their debts.
These latest closures are part of a wider pullback. Denny’s Corp. previously said it was cleaning up the “lower-performing fifth” of its portfolio. The goal was to “increase average unit volumes from $1.9 million to a target of $2.2 million per store.”
In 2025 alone, Denny’s shuttered 4.5% of its locations and sales declined by 2%, according to data from Technomic.
New owners and Project Grand Slam
Denny’s changed hands in January. New York-based private equity firms TriArtisan Capital Advisors and Treville Capital Group, along with franchisee Yadav Enterprises, acquired the chain for $620 million.
The leadership changed soon after. In April, CEO Kelli Vallade stepped down. COO Christopher Bode was promoted into the role.
Bode now leads the company’s turnaround plan, called Project Grand Slam. The plan prioritizes modernizing the 73-year-old brand, which is mostly known for its classic breakfast items.
Denny’s said it was “working with urgency alongside our franchise network to explore every viable path to reopen as many of these restaurants as we can.”
The catering push
As part of Project Grand Slam, Denny’s launched its first national catering program this summer. The move is meant to add a new revenue stream and bolster sales during typically slower weekday daytime hours.
Hard numbers
- Five Denny’s locations closed: four in Minnesota, one in Wisconsin
- 150 additional Denny’s restaurants closed in 2024 and 2025
- Franchisee M15 Inc. plans to file for Chapter 7 bankruptcy
- Denny’s acquired in January by TriArtisan Capital Advisors, Treville Capital Group and Yadav Enterprises for $620 million
- CEO Kelli Vallade stepped down in April; COO Christopher Bode replaced her
- Denny’s shuttered 4.5% of its locations in 2025
- Sales declined 2% in 2025, per Technomic data
- Denny’s launched its first national catering program this summer
The chain faces a hard road ahead. Bode’s Project Grand Slam is the company’s answer. Whether it can reverse the slide remains to be seen.
Source: nrn.com
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