Restaurant chain files for bankruptcy, closes 11 locations

Close up of a person filling petition of bankruptcy form

Close up of a person filling petition of bankruptcy formFuzzMartin/Getty Images/iStockphoto

If you’re looking to dine at a Tijuana Flats restaurant the next time you’re down south, it may not be there.

The Central Florida fast-casual Tex-Mex chain announced on Friday that it has filed for Chapter 11 bankruptcy protection and has closed 11 of its restaurants. The chain didn’t say which locations closed. The company now has 65 company-owned locations throughout Florida, along with 26 franchised restaurants in Florida, Alabama, North Carolina, and Tennessee.

The bankruptcy filing and restaurant closings are in conjunction with the sale of the company. Flatheads LLC has acquired the brand from TJF USA LLC.

“Our company is excited by the new ownership group’s plan to reinvest, focus, and emphasize the things that originally brought so many people to love Tijuana Flats. We understand the immediate financial actions taken by them to ensure the long-term health of this great and iconic brand,” Joe Christina, CEO of Tijuana Flats, said in a news release.

The sale and subsequent bankruptcy filing are the culmination of a strategic review that started in November when the company began exploring various options which included a potential sale.

Tijuana Flats was founded 30 years ago.

Chapter 11 bankruptcy provides businesses or large investors with protection from creditors while they continue operating and develop a repayment plan. Both creditors and owners must agree on a reorganization plan, which ultimately must be approved by a federal bankruptcy judge. Tijuana Flats will continue operating during Chapter 11 bankruptcy.

Daniel Urie

Stories by Daniel Urie

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