An Atlanta-based Applebee's franchisee operating more than 50 restaurants across the South has filed for Chapter 11 bankruptcy, raising questions about the future of dozens of locations in Florida, Georgia, and Alabama.
The filing by Neighborhood Restaurant Partners comes after the company already closed 14 stores over the past year and struggled to find a buyer for the remaining business.
According to bankruptcy documents filed in the Northern District of Georgia and obtained by Penn Live, Neighborhood Restaurant Partners reported assets of $1 million to $10 million and liabilities of $10 million to $50 million. The company also owes more than $13 million to lender Equity Bank.
Court records say the franchisee was squeezed by higher operating costs and weaker consumer spending, forcing it to shut down nine restaurants in 2025 and five more earlier this year.
The latest development is that the parent company, Dine Brands, is stepping in. The owner of Applebee’s and IHOP announced it will serve as the “stalking horse bidder” in the bankruptcy case, giving it the first opportunity to buy the franchisee’s remaining assets and set the baseline for other offers.
Dine Brands had already agreed in February to take control of the restaurants, but the bankruptcy filing accelerated that process.
In a statement, Dine Brands CEO and Applebee’s president John Peyton said the company sees value in the portfolio despite the financial problems.
“Serving as the stalking horse bidder gives us the opportunity to be strategic and selective in supporting the long-term health of the system, and this portfolio of restaurants has historically had solid performance,” Peyton said.
He added that the company is focused on “stability, growth, and doing what’s right for our guests, team members, and franchise partners.”
The bankruptcy arrives at an awkward moment for Applebee’s, which has recently shown signs of improvement. The chain posted a 1.3% increase in same-store sales for 2025, following a 4.2% decline the previous year.
Dine Brands has also been moving away from its longtime strategy of being almost entirely franchised. In March 2025, the company took over nearly 50 struggling restaurants from franchisees to accelerate remodels and improve operations.
By the end of 2025, Dine Brands directly operated 72 locations—about 2% of its total footprint, which also includes dual-branded Applebee’s and IHOP restaurants.
The filing also lands amid broader turbulence in the restaurant business. Earlier this month, a major Popeyes franchisee with more than 130 locations filed for Chapter 11 and began closing restaurants across Florida and Georgia after citing inflation, declining traffic, and roughly $130 million in debt.
