Taco Del Mar Franchising Corp. today announced that it is voluntarily restructuring its business under the protection of Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Seattle.
The company is expecting to continue all business operations during the restructuring without interruption. The restructuring will provide the company a chance to restructure debts and become financially viable again while reorganizing to better position the company for growth in the current economic climate.
"Although this was not our first choice, we believe that the Chapter 11 process will allow us to maximize the value of the Company's assets," says Larry Destro, president and CEO of Taco Del Mar. "Taco Del Mar has tremendous traction in its core markets and this process offers an opportunity to grow without the constraints imposed by the current debt burden and threats of litigation. When we emerge from this restructuring, Taco Del Mar will have become a much more competitive brand and a more financially secure investment for our existing and future franchisees."
Mr. Destro added, "I deeply appreciate the dedication and hard work of our employees, franchisees, and master developers and know that by working together through this process we will emerge stronger than ever."
This restructuring does not involve the franchisee-owned Taco Del Mar store location operations. Only the Taco Del Mar Franchising Corp. will restructure.