The Mediterranean restaurant chain Roti filed for bankruptcy under the US Chapter 11 procedure on Friday.
The filing is intended to support Roti’s efforts to “search for new investors or buyers in a shorter period of time while reorganizing its finances and ensuring that Roti stores in Chicago, Minneapolis and the Washington, DC metropolitan areas can continue to operate,” the Mediterranean restaurant chain’s report said.
Roti filed his petition in the U.S. Bankruptcy Court for the Northern District of Illinois.
This move comes after companies such as Tijuana Flats, Red Lobster, Rubio’s Coastal Grill and Buca di Beppo filed their own Chapter 11 bankruptcy proceedings in recent months.
In his filing, Roti estimated his assets at between $0 and $50,000. His estimated liabilities were between $1 million and $10 million, according to the document.
The company said it will “continue to offer its full menu, catering, loyalty programs and its unique Make Line experience at all of its locations” during the Chapter 11 proceedings.
Its network of 19 restaurants spans Illinois, Maryland, Minnesota and the District of Columbia.
The focus is on bowls, salads and pitas with Eastern Mediterranean flavors, the website says.
To maintain operations at its locations, Roti says it intends to work with its landlords and suppliers.
CEO Justin Seamonds said the Chapter 11 bankruptcy filing was “the best way to address our challenges – including financial performance, higher costs, mixed site performance and difficult market conditions – while remaining open and focused on providing Food For a Full Life to each and every guest.”
The company noted that it was hit particularly hard by the COVID-19 pandemic because half of its locations are in downtown areas, but it has “weathered” those challenges thanks to support from investors and customers. Now it is observing a “current restaurant climate that is stuck in a decline in consumer spending,” Roti said.
In June, 41 percent of respondents to a KPMG survey of nearly 1,100 U.S. adult consumers said they plan to spend less on restaurants during the summer. The average monthly amount by which consumers plan to reduce their restaurant spending during the summer was estimated at 9 percent.
At the same time, according to the survey, 21% intended to spend more on restaurant visits in the summer.
