After closing a string of locations in recent months, the corporate owners of the Chubby’s Tacos restaurants has filed for Chapter 11 bankruptcy.
Kairos LLC, the corporate owner of the Triangle-based chain Guacamaya Fresh Mex, filed for Chapter 11 protection on Sept. 11 in the U.S. Bankruptcy Court for the Eastern District of North Carolina. Chapter 11 bankruptcy filings let a business reorganize its debts and assets, rather than ceasing operations entirely.
The chain reported having nearly $190,000 in assets and almost $2.3 million in liabilities in its bankruptcy filing.
Sales at the chain fell nearly 11 percent from 2015 to 2016, going from $3.7 million to $3.3 million.
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.
Revenue for 2017 was $2.3 million at the time of the filing.
Efforts to reach Joseph Lytton, the listed manager of the chain, were unsuccessful.
In 2014, Chubby’s Tacos rebranded with the name Guacamaya after a trademark dispute with another Colorado restaurant using the Chubby’s moniker, the News & Observer reported at the time. But several of the Chubby’s Tacos locations continued using the Chubby’s name.
Before it began closing several of its locations, Chubby’s Tacos had five locations (three in Durham and two in Raleigh) and had a Guacamaya location in Cary. The Guacamaya in Cary has since closed and so has the original Chubby’s located on Ninth Street and Miami Boulevard in Durham.
The Chubby’s in Woodcroft Shopping Center remains open.