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Another restaurant chain files for bankruptcy
Washington

Another restaurant chain files for bankruptcy

A Mediterranean fast-casual restaurant group has filed for bankruptcy under the US Chapter 11 procedure.

Roti, which has stores in Illinois, Maryland, Minnesota and Washington, D.C., announced Friday that it intends to use the Chapter 11 process to seek new investors or buyers on an expedited timeline while reorganizing its finances and ensuring the continued operation of its restaurants.

“Our vision of creating happier, healthier and tastier lives is becoming a reality by providing our guests with exceptional dining experiences – even in the face of current headwinds,” said Justin Seamonds, CEO of Roti, in a press release. “After careful consideration, filing for bankruptcy protection was the best way to address our challenges – including financial performance, higher costs, mixed site performance and challenging market conditions – while remaining open and focused on delivering food for a fulfilling life to each and every guest.”

The chain said the COVID pandemic has impacted Roti because 50% of its restaurants are in downtown business districts. Now it faces a different problem. Roti says its business is being impacted by “a decline in consumer spending.”

Roti explains that the company wants to work with landlords and suppliers to keep locations open and employees employed.

“Given the turmoil in the restaurant industry, we are proud of our transparency with our team and the goodwill we have earned with our suppliers and landlords over a tough four years. Bankruptcy is a process designed to give businesses like us the tools to stay open, employ our exceptional team members and explore the future prospects for Roti. We expect our loyal, flavor-hungry guests to continue to enjoy us as we tackle this necessary next step in our journey,” said Seamonds.

Roti plans to continue offering its full menu, catering and loyalty programs. The chain was founded in Chicago in 2006 and serves a variety of Mediterranean bowls, pitas and salads.

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