It looks like the “scattered, smothered and covered” hash browns at Waffle House may have found a financial savior.
A major Waffle House franchisee in the Southeast, Northlake Foods of Brandon, has been under bankruptcy court protection for three months. The company owned 146 Waffle House restaurants in the South, including 90 restaurants in Florida, when it filed for Chapter 11 bankruptcy protection in September.
Waffle House Inc. now is proposing to buy Northlake’s remaining 121 restaurants.
Northlake filed bankruptcy partly to hold off Waffle House Inc. headquarters in Norcross, Ga., which was threatening to terminate Northlake’s right to operate Waffle House restaurants because it had failed to pay royalties.
Northlake has closed a number of its restaurants in recent months.
