A popular fast food chain now files an unexpected bankruptcy in the U.S. Court for the Middle District of Florida.
Taco Bell rival Tex-Mex sold the company to a new ownership group and closed 11 of its locations, per the filing.
The new owners, Flatheads LLC, purchased the restaurant chain from TJF USA LLC with a plan to revitalize its restaurants and reinvigorate the customer experience, the company said in a statement.
“Our company is excited by the new ownership group’s plan to reinvest, focus, and emphasize the things that originally brought so many people to love Tijuana Flats.
We understand the immediate financial actions taken by them to ensure the long-term health of this great and iconic brand,” Tijuana Flats CEO Joe Christina said in the statement.
Christina will remain as CEO, the company said.
The debtor listed $1 million to $10 million in assets and $10 million to $50 million in liabilities in its petition.
Its largest unsecured creditors are US Foods, owed $2.9 million and online ordering system provider Mobo Systems, owed $522,689.
It also owes $442,249 to the Florida Department of Revenue and $297,572 to the Internal Revenue Service.
Tijuana Flats had not yet filed a motion seeking debtor-in-possession financing on April 19.
The company said that the sale and bankruptcy filing are a culmination of a strategic review that it began in November 2023 seeking options to improve its business.
The closing of 11 locations was necessary after a unit-by-unit analysis of financial performance, occupancy costs and market conditions.
Fortunately, the chain’s remaining restaurants will continue to operate as usual.
Flatheads said it plans to go back to basics and original roots, focusing on customer service, quality food and fair prices.
The new owners will renew the chain’s focus on quality controls, speed of service, consistency of food, serving size, and improving in-store experience.
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Also Read: A Massive Grocery Brand Now Files For Chapter 11 Bankruptcy
Other Economy News Today
A famous clothing company now begins closure and layoffs after tripling its warehouse footprint in the past three years.
Lululemon is planning to shut down its Washington distribution center after opening a sprawling new warehouse outside of Los Angeles, reports CNBC.
The athletic apparel retailer said some staff will be relocated to other warehouses, but a total of 128 employees will unfortunately be laid off.
Lululemon filed a WARN notice with the state’s Employment Security Department on Thursday, notifying it of its plans to close its distribution center in Sumner, located about 35 miles south of Seattle, and cut a total of 128 jobs.
Layoffs will begin on June 21, the WARN notice said.
The facility on the other hand is expected to close by the end of the year, according to a Lululemon spokesperson.
“As we continue to deliver on our growth strategy to meet the needs of our guests, we regularly evaluate our distribution network to help shape and support the future vision of our business.
Following a review of our current infrastructure and the evolution of our fulfillment strategy, which includes a multi-year investment to increase overall capacity and support our growth, we have made the decision to close one of our smaller distribution centers — located in Sumner, WA,” the spokesperson said.
“While some employees will be retained and will relocate to other facilities, including our recently opened distribution center in the greater Los Angeles area, the optimization will result in the reduction of just over 100 positions within the existing Sumner distribution center,” the person added.
“We are committed to supporting our impacted employees through this transition.”
The 150,000 square foot facility has a lease that expires in July 2025, according to company securities filings.
Lululemon first started operating a warehouse in Sumner in 2010, and it appears to be the first major distribution center the company opened in the U.S. after going public in 2007, according to securities filings.
The closure comes after Lululemon more than tripled its warehouse footprint in the past few years to accommodate its rapid growth.
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Also Read: This Massive Mall Retailer Now Closes For Good
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