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14 Florida restaurants closing following Chapter 11 bankruptcy

The state of Florida is known as a huge tourist destination for its beautiful beaches, weather and tourist attractions. Along with that there has been a surge in the amount of restaurants and dining establishments throughout the state. This is due to the increased demand for these types of establishments. Despite this high-demand marketplace, a Spanish based restaurant chain is closing 14 restaurants in Florida.

This news comes from reports that the Spanish-owned company operating in several different countries has not paid Sysco South Florida over $11,000 in operating-related expenses. According to reports, most of this is related to unpaid rent expenses. Filing for Chapter 11 will now close their 14 locations in Florida and will hinder their plans for further U.S. expansion. The company had plans to expand up into New York prior to the press release concerning the Chapter 11 filing.

It is likely that the 100 Montaditos operator chose Chapter 11 for a few specific reasons. Mainly, Chapter 11 is the ideal choice because it allows the owner to be in control of its operations but will be subject to the jurisdiction of bankruptcy court. This contrasts with Chapter 7, which turns over all control of the business and it ceases to operate. Naturally, this would be a poor choice since the company is closing just a portion of their operating locations, not the entirety.

While it is a shame to hear of the closing of the 14 Florida locations, it seems that the business is managing its losses in the best possible way. Any business owner or CEO knows of the ups and downs that can come with running a business. Some years you are up and others you're down but the correct managing choices can turn everything around. Any business contemplating any type of bankruptcy will need to analyze several factors to determine which is right for them.

Source: bizjournals.com, "Miami-based 100 Montaditos operator files for bankruptcy," Emon Reiser, Mar. 5, 2015

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