Tex-Mex chain in the border files for chapter 11 insolvency protection

Mexican grill & cantina applied for on the border this week an insolvency protection when it came to participating in the macroeconomic environment.

The Tex-Mex chain, which belonged to the Argonne Capital Group, applied for insolvency protection in the United States Insolvency Court for the Northern District of Georgia at the beginning of this week, after he reported 40 locations. After its bankruptcy registration, the company operates 80 locations in the United States and International.

Like its competitors, the company has given a decline in traffic in recent years, it had endeavored to keep employees and, according to the Associated Press, to be exposed to growing costs as a minimum wage.

Fox Business turned to the Argonne Capital Group for a comment.

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It is the latest in one growing number of important restaurant chains This was submitted by the protection of the insolvency court after fighting to cope with the strong debts accumulated during the Covid 19 pandemic. According to the insolvency lawyer Daniel Gielchinsky, it will not be the last one who will probably give more restaurants in the coming years that will probably submit more restaurants.

At the border Mexican grill at dusk. (Jeffrey Greenberg / Universal Images Group via Getty Images / Getty Images)

TGI Friday’s, Denny’s, Ruby Tuesday, Rubios Coastal Grill and Red Lobster have applied for protection from the insolvency court in recent years, whereby Hooters of America may be the list. The company is considering reporting bankruptcy as a means of restructuring the restaurant chain and fighting its debts recently shared with Bloomberg.

The industry expected consumer expenses in restaurants to return to the pre-Pandemic level as soon as it was normal again. But the Quick service sector started slowing down in two consecutive quarters when the inflation warning consumers ate at home more often.

According to reports, Hooters of America is considering raising bankruptcy as a means of restructuring the restaurant chain and fighting their debts. (Michael P. Farrell / Albany Times Union about Getty Images / Getty Images)

Hooters consider a possible bankruptcy registration

“Customers never came into force” because their habits and spending changes, which meant that the top line revenue, according to Gielchinsky, could not repay these loans.

Some companies that did not make bankruptcy reduced their footprint considerably to position themselves better in the current environment and bring traffic customers back to their restaurants.

Red Robin only announced this week that it is also considering 70 locations as soon as her rental agreement has expired when attempts are made to turn his operations around.

Customers in a restaurant in the ferry building in San Francisco on May 31, 2024. (David Paul Morris / Bloomberg via Getty Images / Getty Images)

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The company plans to sell three properties in the first quarter of the 2025 financial year. The sale of these locations is expected to generate $ 5.8 million, some of which are used to repay its debts.

While the financial results for the 2024 financial year fell “the company’s original expectations far below the company, CEO GJ Hart said that the company had” significant improvements to the guest experience “to bring traffic back to its restaurants.

Fast food chain Wendy’s Shorttered 140 locations below average By the end of 2024 to improve the “footprint and health of the overall system of the restaurant”.