Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Major Mexican Restaurant Chain, Rita Restaurant Corp, files Chapter 11
Author: Joel R. Glucksman
Date: November 15, 2016
Key Contacts
Back
Recently, Rita Restaurant Corp, the owner of Don Pablo’s Mexican Kitchen, one of the largest Mexican food chains in the country, announced it filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, while the restructuring plan is not set yet, the company could close a substantial portion of its 16 chain locations in 10 states.
Rita Restaurant Corp falls into insolvency
In its bankruptcy documents, Rita Restaurant Corp cited a general market down shift away from fast food Mexican food brands due to over-saturation. The Journal reported that there has been a significant increase in fast casual food dining restaurants and competition in the Mexican food space in recent years, which has made it tougher to sustain sales revenues.
With similar chain brands such as Moe’s Southwest Grill, Panchero’s Mexican Grill, Baja Fresh, Qdoba, Chipotle Mexican Grill, Chili’s, Applebee’s and TGI Friday’s opening more and more locations across the country with Mexican food offerings, Don Pablo’s financial performance has struggled.
As a result of this downward pressure in the Mexican food restaurant market, Rita Restaurant Corp reported both assets and debt liabilities ranging from $1 million to $10 million, according to Cincinnati.com.
This downward trend has impacted several other national fast casual food chain restaurants this year. Within the last year, Garden Fresh Restaurant Corp., Cosi Inc., Logan’s Roadhouse and Fox & Hound restaurants have all filed for Chapter 11 bankruptcy protection due to steadily dropping sales revenues.
Rita Restaurant Corp’s reorganization plan
Rita Restaurant Corp has not reached refinancing agreements with its creditors as of yet, but the company has already begun to close stores in certain states. There is no plan to shutter more locations as the company enters the bankruptcy process, but speculation is that it will.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.