LOUISVILLE, KY – A major Hardee’s restaurant franchisee operating dozens of locations across the Midwest has filed for voluntary Chapter 11 bankruptcy protection following a massive multi-million dollar dispute with its lender.
The Bankruptcy Filing
Phoenix-based Superior Star LLC filed its petition in the U.S. Bankruptcy Court for the Western District of Kentucky on July 9, 2026. The filing lists both assets and liabilities estimated between $10 million and $50 million.
Superior Star purchased 93 Hardee’s locations across 10 states in 2023 but has since scaled down, currently operating 59 locations across Midwestern states, including Iowa, Illinois, Indiana, Kentucky, Minnesota, Missouri, North Dakota, Ohio, South Dakota, and Tennessee.
The $7 Million Dispute
According to court documents, the primary driver behind the bankruptcy is a legal battle with Starcorp LLC over a $7.04 million seller note. By filing for Chapter 11, Superior Star has invoked an automatic stay, halting all ongoing legal actions and collections against them while they restructure.
The company’s largest listed creditors include:
- Starcorp LLC: Owed $7.04 million (disputed seller note)
- Lionsgate Investment: Owed over $184,000 in terminated leases
- McLane Company Inc.: Owed over $138,000 for food products
Hardee’s Parent Company Under Pressure
In an official statement, franchisor Hardee’s acknowledged the filing:
“Superior Star’s decision to file is based on its own specific financial and business circumstances. We remain focused on continuing to strengthen the Hardee’s system and deliver quality experiences for our guests.”
This filing comes amid broader tensions between parent company CKE Restaurants Holdings and its franchisees over fees, loyalty programs, and operating hours. Just recently, in April 2026, another major franchisee (ARC Burger LLC) filed for Chapter 7 liquidation and closed 77 locations following a separate legal battle with CKE.
Local operations for Superior Star’s remaining 59 Midwest locations are expected to continue under court supervision during the restructuring process.
