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This is cash-strapped Tijuana Flats’ survival tactic amid bankruptcy

ORLANDO, Fla. — Editor’s note: This story is available as a result of a content partnership between WFTV and the Orlando Business Journal.

Some Tijuana Flats Restaurants LLC bankruptcy creditors must wait a little longer to find their relief, based on a May 29 order. Avoiding rent payment is one of the ways Tijuana Flats is navigating financially challenging times as it goes through the Chapter 11 bankruptcy process

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The judge’s first order on this topic, issued on April 24 — which was extended last week — granted the popular Tex-Mex restaurant the ability to use cash from its lender to pay for “necessary expenses to continue their business operations” like employee wages and benefits, supplies and inventory, maintenance and repairs, legal and other professional service fees, insurance and taxes. However, this left the chain’s landlords of 65 corporate-owned eateries with rent overdue. Franchisee locations are not involved in the case.

Why is Tijuana Flats’ court order significant to its business? This strategy has allowed Tijuana Flats to navigate staying open by obtaining interim relief while the bankruptcy case progresses. The proceedings will allow the company to restructure its debt and keep locations and workers employed.

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