Matador Restaurant Group, a Del Taco franchisee with 22 outlets, has declared bankruptcy due to financial struggles. Assets and liabilities are reported between $1m and $10m each, with over $2.7m in MCA debts. Owner Red Door Brands, managing other chains, will also undergo separate bankruptcy proceedings. Del Taco operations and MCA financing are cited as the root issues.

Del Taco outlets faced challenges in late 2024 from company growth, sales decline, and rising costs. MCA financing was used as a temporary fix, as advised by brokers, leading to intensified collection efforts by creditors. Bankruptcy filing aims to halt collections and facilitate reorganization, with complications arising from recent actions.

In February 2025, Del Taco signed a deal to open ten outlets in Indiana, followed by sudden closures of most Colorado restaurants the next month due to franchisee Newport Ventures’ bankruptcy proceedings. Plans for expansion into Louisville, Kentucky, were announced in June through a five-store deal with new franchisee Karan Pandher.

Read more at Yahoo Finance: Matador Restaurant Group files for bankruptcy