MINNEAPOLIS, MN – The fast-food chain sector’s ongoing battle with rising inflation and labor costs has claimed another casualty, forcing a major Long John Silver’s franchisee to file for Chapter 7 bankruptcy liquidation.
Mall Of America Closure Leads To Bankruptcy
Eagan, Minnesota-based franchisee Uplifted Foods LLC filed its bankruptcy petition in the U.S. Bankruptcy Court for the District of Minnesota on May 29. The filing follows the abrupt closure of its Long John Silver’s location at the iconic Mall of America in Minneapolis on April 30.
According to court documents, the franchisee listed up to $100,000 in assets against liabilities ranging between $100,000 and $1 million.
The Nationwide Decline Of Long John Silver’s
The bankruptcy highlights a massive downsizing trend for the 57-year-old seafood chain. Since its peak of 1,081 locations in 2007, Long John Silver’s has shuttered 706 restaurants nationwide.
- 2007 Peak: 1,081 locations
- End of 2024: 485 locations
- Current Count (2026): 375 locations
The chain closed 110 units in just the last 18 months, leaving it with a fraction of its original footprint.
The Industry-Wide Crunch
According to the 2026 Technomic Top 500 Chain Restaurant Report, sales growth across major chains has hit its lowest rate since the 2008 financial crisis.
Data from the Bureau of Labor Statistics shows that labor and food costs surged by 35% between 2019 and 2025. To cope, restaurants raised menu prices by an average of 31%, heavily discouraging consumer dining out.
Other Major Chains Facing Closures In 2026
Long John Silver’s is not alone in its struggles. Several other household names have announced massive downsizing plans for the first half of 2026:
- Pizza Hut: Shuttering 250 underperforming locations as part of its “Hut Forward” strategy.
- Papa John’s: Closing 300 underperforming restaurants, with 200 scheduled to shut down by the end of 2026.
