Mediterranean restaurant chain Roti filed for Chapter 11 bankruptcy protection on Friday.
Mediterranean restaurant chain Roti said the filing was intended to expedite its efforts to “restructure its finances and seek new investors or buyers on an accelerated timeframe while ensuring the continued operation of Roti restaurants in Chicago, Minneapolis and the Washington, D.C. metropolitan area.”
Lottie started a petition U.S. Bankruptcy Court for the Northern District of Illinois.
The company's move comes as companies including Tijuana Flats, Red Lobster, Rubio's Coastal Grill and Buca di Beppo have each filed for Chapter 11 bankruptcy protection in recent months.
In its filings, Loti estimated its assets to range from $0 to $50,000, and reported liabilities of between $1 million and $10 million.
The company said that during the Chapter 11 bankruptcy proceedings, “all restaurants will continue to offer their full menu, catering, loyalty programs and distinctive make-a-line experience.”
The network is 19 Restaurants It spans Illinois, Maryland, Minnesota and the District of Columbia.
According to its website, the company focuses on Eastern Mediterranean-inspired bowls, salads and pitas.
The company said Roti will be working with store owners and suppliers to keep stores open.
CEO Justin Simons said filing for Chapter 11 was the best way to address our challenges, including poor financial performance, increasing costs, inconsistent performance across locations and challenging market conditions, while remaining open and focused on bringing Food For a Full Life to all our customers.
The company said it was hit especially hard by the COVID-19 pandemic because half of its restaurants are in downtown areas, but that it “were able to weather” these challenges thanks to the support of investors and customers. Weak consumer spending” said Lottie.
In June, 41% of respondents KPMG Survey Approximately 1,100 adult U.S. consumers said they intend to cut back on spending at restaurants over the summer. The average monthly amount consumers plan to cut back on restaurant spending over the summer was estimated at 9%.
Meanwhile, the survey found that 21% intend to spend more at restaurants over the summer.
