Well-known Tex-Mex Restaurant Chain files for bankruptcy

At the Mexican border Grill & Cantina were presented for bankruptcy protection this week as he tried to compete in the macroeconomic environment.

The Tex-Mex chain, owned by Argonne Capital Group, presented for Chapter 11 Bankruptcy Protection at the United States bankruptcy court for the northern district of George earlier this week after reporting to close 40 seats.

According to the presentation of its bankruptcy, the company operates 80 countries in the US and international.

Like its rivals, the company said it has seen a decline in traffic in recent years, tried to maintain deeds and cope with growth costs while minimum wages increased, according to the Associated Press.

Fox Business arrived at Argonne Capital Group for comment.

It is the latest in a growing number of the main chains of restaurants that have presented protection in the bankruptcy court after trying to manage the heavy debt they collected during the Covid-19 pandemics.

It would be the last, according to bankruptcy lawyer Daniel Gieelchinsky, who projects there is likely to have more restaurants that represent protection over the coming years.

TGI Friday’s, Denny’s, Ruby Tuesday, Rubio’s coastal grill and Lobster Red have filed for protection at the bankruptcy court in recent years, with Hooters of America potentially joining the list.

The company is reviewing bankruptcy as a tool to restructure the restaurant chain and handle its debt, sources recently told Bloomberg.

The industry expected consumer spending in restaurants to return to pre-landmark levels after things were back to normal.

But the fast service sector began to cope with the slowdown of traffic in back-back neighborhoods as customers carefully inflation continued to eat at home more often.

“Customers never turned into full strength” due to changes in their habits and expense ability, which meant that high -line revenues never be rebuilt and debt -ray restaurants were not able to repay those loans, according to the Atttorney Daniel Gielchinsky bankruptcy.

Some companies that did not present bankruptcy significantly reduced their trail to better position in the current environment and bring traffic customers back to their restaurants.

Red Robin recently announced this week that she is also considering the closure of 70 countries after their rent expires after attacking her operations.

The company plans to sell three properties during the first quarter of 2025 fiscal.

The sale of those countries is expected to generate $ 5.8 million, which the company predicts will be partially used to repay its debt.

While the financial results for the original expectations of the company 2024 “Ra very below”, CEO GJ Horn said the company has made “significant improvements in guest experience” to try and run traffic in its restaurants.

The Wendy Quick Food Chain closed 140 subformer sites by the end of 2024 while it seems to improve its “restaurant trail and overall system health”.