Tijuana Flats, a Tex-Mex restaurant chain, has filed for bankruptcy and closed 11 locations. The company, which has over 125 locations across the South, cited financial performance, occupancy costs, and market conditions as factors in the decision. Despite the closures, Tijuana Flats emphasized that 91 of its restaurants remain open.
Tijuana Flats was acquired by Flatheads, LLC, which plans to reinvest in the brand and focus on the factors that originally attracted customers.
Bankruptcy is a legal process that allows companies to eliminate debt and start fresh. Chapter 11 bankruptcy, which Tijuana Flats filed for, is used to restructure a business with the goal of remaining open.