A TEX-MEX chain filed for bankruptcy and closed 11 of its restaurants this week.
Tijuana Flats, a Florida-based company and rival to Chipotle, announced the shocking changes after it was recently sold to a new group of owners.
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The new owners, Flatheads, LLC, said they planned to make drastic adjustments to improve the store and the customer experience, according to a report. Press release.
Tijuana Flats was previously owned by TJF USA, LLC and had more than 125 locations in the South, according to the company’s website.
CEO Joe Christina said these steps were taken to secure the company’s long-term future.
“Our company is excited about the new ownership group’s plan to reinvest, focus and emphasize the things that originally led so many people to love Tijuana Flats,” said Christina.
READ MORE ABOUT STORE CLOSURES
“We understand the immediate financial actions taken by them to ensure the long-term health of this great and iconic brand.”
The company explained that several factors were considered when choosing the 11 locations to be closed.
These points were financial performance, occupancy costs and market conditions for each unit.
The company did not disclose which 11 locations were chosen to permanently operate.
Tijuana Flats was founded almost 30 years ago and has locations in Florida, North Carolina, Tennessee, Alabama and Virginia.
These weren’t the only changes the restaurant chain made this month.
Tijuana Flats introduced a new menu that launched on April 1st.
Restaurants also started using new take-away and delivery packaging that was designed to improve delivery times and food.
Tijuana Flats also confirmed that it would not change CEO.
“Since joining the brand, I have been committed to leading with the vision of serving every guest the tastiest Tex-Mex food and providing the best guest experience in the country,” said CEO Christina.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps businesses eliminate debts they cannot pay.
The process allows businesses to start from scratch and gain access to new credit.
Overseen by federal courts, bankruptcies allow a company to more easily sell its assets to pay creditors, according to Investopedia.
Chapter 11, a common process for businesses, is used to restructure a business with the goal of staying open – even if it means selling most of the company’s properties.
MONEY PROBLEMS
Tijuana Flats may not be the only chain to file for bankruptcy this year, as financial troubles hit a household name.
Red Lobster is considering filing for Chapter 11 bankruptcy, US Sun previously reported.
The move would allow the chain to remain open while resolving reported financial difficulties from rents, contracts and salary costs.
Red Lobster is said to have lost $11 million last year on its Endless Shrimp promotion.
Another restaurant chain has also faced several closures in recent months, US previously reported.
Cracker Barrel has closed four of its locations on different sides of the country.
This includes locations in California, South Carolina, Tennessee and Oregon.
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This story originally appeared on The-sun.com read the full story
