Tijuana Flats files for bankruptcy amid tough times for restaurant chains

April 22 (UPI) -- The Tijuana Flats restaurant chain, which has dozens of locations concentrated mainly in Florida, announced Monday it has filed for Chapter 11 bankruptcy protection and has closed 11 restaurants.

In conjunction with the filing, the company announced a change in ownership with Flatheads LLC taking over to implement "a plan of revitalizing its restaurants and reinvigorating the customer experience."

Before the moves, Tijuana Flats had been owned by TJF USA LLC.

"Our company is excited by the new ownership group's plan to reinvest, focus, and emphasize the things that originally brought so many people to love Tijuana Flats," said CEO Joe Christina, who will remain in charge of the company. "We understand the immediate financial actions taken by them to ensure the long-term health of this great and iconic brand."

The fast-casual Tex-Mex restaurant was founded in 1995 in Winter Park, Fla., and currently has 65 company-owned locations throughout Florida, along with 26 franchised restaurants located in Florida, Alabama, North Carolina and Tennessee.

Tijuana Flats' bankruptcy is the latest in a string of financial troubles for restaurant chains across the country in the wake of stubborn inflation and a drop-off in foot traffic.

The owner of the Boston Market chain, Jay Pandya, attempted to file for a second bankruptcy earlier this year but the bid was dismissed by a federal bankruptcy court in Pennsylvania as reports indicated the once-thriving rotisserie chicken pioneer was down to 27 locations nationwide.

Meanwhile, the venerated Red Lobster seafood chain is also considering bankruptcy after reporting $12.5 million in losses in the fourth quarter of 2023, Bloomberg reported.