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Mediterranean restaurant chain Roti on Friday filed for Chapter 11 bankruptcy protection.
The filing was meant to facilitate Roti’s efforts to “seek new investors or purchasers on an accelerated time frame while reorganizing its finances and ensuring that Roti locations across Chicago, Minneapolis and the Washington, D.C. metro areas continue to operate,” according to the Mediterranean restaurant chain.
Roti submitted its petition to the U.S. Bankruptcy Court for the Northern District of Illinois.
Judge’s gavel. (iStock / iStock)
Its move to do so comes after companies like Tijuana Flats, Red Lobster, Rubio’s Coastal Grill and Buca di Beppo have entered Chapter 11 bankruptcy proceedings of their own in recent months.
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In its filing, Roti estimated its assets were in the $0 to $50,000 range. Estimated liabilities were reported as $1 million to $10 million, according to the document.
The company said it will “continue to offer its entire menu, catering, loyalty programs, and distinctive make-line experience across its locations” during the Chapter 11 process.
Its network of 19 restaurants spans Illinois, Maryland, Minnesota and the District of Columbia.
They focus on Eastern Mediterranean-flavored bowls, salads and pitas, according to its website.
To maintain operations at its locations, Roti intends to work with its landlords and suppliers, according to the company.
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CEO Justin Seamonds said the Chapter 11 filing “was the best way to address our challenges – including financial performance, higher costs, mixed location performance and tough market conditions – while staying open and focused on delivering Food For a Full Life to each and every guest.”
The company noted it had been hit particularly hard by the COVID-19 pandemic due to half of its locations being in downtown business areas but “made it through” those challenges thanks to investor and customer support. Now, it is seeing a “current restaurant climate mired in a consumer spending downturn,” Roti said.
Restaurant bill with dollar bills (tips) on a plate and receipt close up (iStock / iStock)
In June, 41% of respondents to a KPMG survey of almost 1,100 adult consumers in the U.S. reported intentions of cutting their restaurant spending during the summer. It pegged the average monthly amount that consumers plan to trim their summer restaurant spending by at 9%.
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Meanwhile, 21% had intentions of upping their summer restaurant spending, according to the survey.
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