A Minneapolis Firehouse Subs franchisee has filed for Chapter 11 bankruptcy, listing more than $1 million in debts, according to documents filed April 4.
MR Investments, led by Michael Ruoho, has two Firehouse Subs stores in two Minneapolis suburbs, as well as Pizza Man restaurants. MR Investments previously owned a third Firehouse location.
Ruoho’s attorney, John Lamey of Lamey Law Firm, provided no comment. Firehouse Subs did not respond to Franchise Times’ request for comment.
Ruoho listed liabilities totaling $1.14 million and assets totaling $68,376. MR Investments is based in Stillwater, Minnesota.
MR Investments received a $499,900 Economic Injury Disaster Loan from the Small Business Administration in June 2020.
MR Investment’s Woodbury, Minnesota, location has equipment assets totaling $56,873, but the liquidation price amounts to $28,314. The Plymouth, Minnesota, store’s assets total just shy of $55,000, with liquidation price amount to $27,483. The stores’ fixtures make up nearly all of his assets, with $8,000 listed for inventory and $4,578 for cash and other financial assets.
Ruoho is one of a handful of franchisees under the Restaurant Brands International umbrella who have filed for Chapter 11 bankruptcy this year. RBI owns Tim Hortons, Burger King, Popeyes and Firehouse Subs.
Two large Burger King franchisees, TOMS King and Meridian Restaurants Unlimited, filed for bankruptcy in January and March, respectively. TOMS, a franchisee with 90 Burger King locations, cited a loss of foot traffic for its declining revenue. Meridian listed increased costs, as well as a low sales. Meridian has 118 Burger King units.
Premier Cajun Kings, a 19-unit Popeyes franchisee, filed for bankruptcy in March. The company’s owner, Manraj “Patrick” Sidhu, died suddenly in March 2022, which Premier said “triggered great operational instability.”