Tijuana Flats, a Florida-based Tex-Mex restaurant chain, has announced that it has filed for bankruptcy and closed 11 of its locations. The company cited financial performance, occupancy costs, and market conditions as factors in the decision to close the underperforming restaurants.
Despite the closures, Tijuana Flats emphasized in a social media post that 91 of its restaurants remain open and are expected to do so going forward.
Tijuana Flats was acquired by Flatheads, LLC, which plans to reinvest in the brand and focus on the factors that originally attracted customers to the Tex-Mex chain.
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, even if it means selling off most of the company’s properties.
Tijuana Flats, which is often compared to Chipotle, was founded nearly 30 years ago and has locations in Florida, North Carolina, Tennessee, Alabama, and Virginia. The company launched a new menu on April 1 and is using new packaging for takeout and delivery in an effort to improve delivery times.
