Rōti Modern Mediterranean is seeking restructuring after filing for Chapter 11 bankruptcy last week, the company said.
The Chicago-based fast-casual company, which closed Restaurants since the pandemic began in 2020, has 19 restaurants in three states and the District of Columbia.
“The company intends to use the Chapter 11 proceedings to seek new investors or buyers on an expedited timeline while reorganizing its finances and ensuring that Roti’s Chicago, Minneapolis and Washington, DC metropolitan areas can continue to operate,” Roti said in a press release.
Founded in Chicago in 2006, the company said it would continue to offer its full menu, catering and loyalty programs.
Justin Seamonds, the Appointed CEO of Roti in 2020, said in a statement: “After careful consideration, filing for bankruptcy protection was the best way to address our challenges – including financial performance, higher costs, mixed site performance and difficult market conditions,”
In 2021 Seamonds had outlined plans for the brand.
In a statement, the company said: “The COVID pandemic disproportionately impacted Roti, as 50% of its restaurants were located in downtown business districts – but Roti pulled through with the support of investors and consumers, only to now find itself in the current restaurant industry stuck in a decline in consumer spending.”
The restaurant industry has been hit by bankruptcies this year, including Companies like One Table Restaurant Brands, Parent company of Tender Greens, in July,
Red Lobster, which filed for Chapter 11 bankruptcy in May, Rubio’s and Tijuana Flats. Other smaller concepts and franchises that filed for bankruptcy in the first half of 2024 include Party Fowl, Boxer Ramen, Sticky Fingers, Oberweis Dairy, Foxtrot/Dom’s Kitchen, Melt Bar & Grilled, Kuma’s Corner, Subway’s River Sub LLC and Arby’s Miracle Restaurant Group..
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