Real Mex Files For Bankruptcy
Courtesy of El Torito.
If you've ever wondered why the food at El Torito, Chevy's and Acapulco tastes remarkably similar, it's because they all have the same corporate parent, Real Mex Restaurants, Inc.. The company, which owes $49 million to its employees and food suppliers but only has $1 million cash on hand, recently filed for bankruptcy in Delaware, reports Reuters.
The bankruptcy will affect more than 200 restaurants, most of which are concentrated in California and other western states, according to Total Bankruptcy.
Real Mex isn't the only victim of a bad economy, rising food costs and shrinking demand. In June of this year, Marie Callendar's filed for bankruptcy, and last year, Koo Koo Roo closed several of its California locations.
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