American fast food restaurant chain Del Taco has abruptly closed almost all of its restaurants in the US state of Colorado without revealing details of its decision.
The closures, undertaken by franchisee Newport Ventures, are reportedly due to bankruptcy proceedings involving the franchisee.
The restaurant chain has posted signs alerting customers that all Colorado Del Taco locations are closed until further notice.
The store in Grand Junction is still open as it is owned and operated by a different franchisee.
Del Taco provided a statement to multiple news agencies: “Del Taco is proud to have been serving the state of Colorado since 2003 and we appreciate the ongoing support of our loyal guests.
“At this time, our Denver and Colorado Springs franchise locations are temporarily closed. We will re-open these locations as soon as possible and will share updates as they become available. Thank you for your patience and support.”
Newport Ventures filed for Chapter 11 bankruptcy protection in October 2024, as reported by Nation’s Restaurant News.
Allen Soong of Paladin Management, the chief restructuring officer, stated that the lender would not continue funding the company.
According to court documents, Del Taco found Newport Ventures in breach of its franchise agreement, including a missed payment of $125,000 due by 17 October for the development of ten new restaurants.
The franchisee's financial struggles led to the abrupt closure of the locations.
Jack in the Box, which acquired Del Taco in 2022, reported a 4.5% decline in same-store sales for Del Taco in the first quarter ending 19 January 2025.
In February, Del Taco signed an agreement to open ten outlets in Indiana.
The targeted locations include three within the Indianapolis designated market area (DMA) of Greenwood, Plainfield and Avon, and the cities of Bloomington, Bedford and Columbus.
"Del Taco closes almost all restaurants in Colorado" was originally created and published by Verdict Food Service, a GlobalData owned brand.
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