Denny’s has closed five more restaurants after franchisee M15 Inc. said mounting debt left it unable to meet payroll or purchase supplies. It also plans to file for Chapter 7 bankruptcy.
The closures affect four restaurants in Minnesota — Maplewood, Burnsville, Roseville and North Branch — and one in Hudson, Wisconsin. Employees were reportedly notified that the restaurants would shut effective Sept. 3.
Importantly, the bankruptcy plans involve M15 rather than Denny’s itself. The restaurant chain said it is working with its franchise network to explore options that could allow as many of the affected restaurants as possible to reopen under new ownership.
Denny’s Pushes Ahead With Project Grand Slam Turnaround
The latest shutdowns form part of an effort to shrink and improve Denny’s restaurant portfolio. The company closed roughly 150 underperforming restaurants across 2024 and 2025 to remove the weakest-performing portion of its system and lift average sales per location.
Denny’s has also undergone major changes at the corporate level. The company was acquired in January for approximately $620 million by TriArtisan Capital Advisors, Treville Capital Group and Yadav Enterprises.
Announcement from Denny’s
Three months later, Christopher Bode replaced Kelli Valade as CEO and took charge of Project Grand Slam, a 24-month turnaround strategy that is designed to modernize the 73-year-old diner brand.
The plan includes restaurant remodeling, menu innovation, digital upgrades and new revenue opportunities as Denny’s tries to improve sales and attract more customers. One of those initiatives arrived this summer when Denny’s launched its first national catering program.
Denny’s is facing pressure across its restaurant network. According to Technomic data, the chain closed 4.5% of its locations in 2025 while sales declined 2%.
