Global Midsouth files Chapter 11 with $1.3m liabilities

Global Midsouth Holding Corp., a Checkers and Rally’s franchisee, filed for Chapter 11 on Oct. 28 with about $1.9 million in assets and $1.3 million in liabilities, according to a KTLA news report citing TheStreet.

For Global Midsouth, court protection put an Oct. 29 foreclosure auction on hold for its Jackson, Tennessee, property, increasing scrutiny of an operator that had expanded to 16 restaurants by July 2025.

Chapter 11 allows a business to keep operating while it seeks to restructure under bankruptcy-court supervision. Global Midsouth filed in the U.S. Bankruptcy Court for the Western District of Tennessee, KTLA reported.

The company’s reported revenue has declined. It generated $860,000 in 2024 and $800,000 in 2025, while 2026 revenue totaled about $582,000 through the Oct. 28 filing date, according to the report.

Global Midsouth is owned by Sedrick Turner, who has operated Checkers and Rally’s franchises for roughly three decades. By July 2025, his restaurant portfolio covered Alabama, Missouri, Mississippi and Tennessee, KTLA reported, citing TheStreet.

The filing follows other bankruptcy cases involving fast-food franchise operators. C.S. Holdings of Tampa LLC, a Checkers franchisee with two Florida restaurants, filed for Chapter 11 in July, while Wendy’s operator Meritage Hospitality Group filed in September after operating more than 350 restaurants across 15 states, according to TheStreet.

Checkers and Rally’s restaurants are run by franchisees under agreements with Checkers Drive-In Restaurants, which has not filed for bankruptcy. The chain, founded in 1986, operates more than 700 locations nationwide and is seeking new franchise opportunities in markets including Southern California and Las Vegas.

The Global Midsouth case involves reported locations outside California. No California restaurants have been identified as part of the bankruptcy filing, and representatives for Checkers and Rally’s were not immediately available for comment, according to TheStreet.

Source: news report, KTLA, Nov. 5