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
- 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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
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.