Fast-casual restaurant seeks new investors while continuing operations
Rōti Modern Mediterranean is seeking to reorganize after filing for Chapter 11 bankruptcy protection last week, the company said.
The Chicago-based fast-casual company, which has closed restaurants since the 2020-declared pandemic, has 19 restaurants in three states and the District of Columbia.
“The company intends to use Chapter 11 to seek new investors or purchasers on an accelerated time frame while reorganizing its finances and ensuring that Roti locations across Chicago, Minneapolis, and the Washington, D.C., metro areas continue to operate,” Roti said in a press release.
The company, which was founded in 2006 in Chicago, said it plans to continue to offer its entire menu, catering, and loyalty programs.
Justin Seamonds, who was named Roti CEO in 2020, said in a statement: "After careful consideration, filing for bankruptcy protection was the best way to address our challenges — including financial performance, higher costs, mixed location performance and tough market conditions,”
In 2021, Seamonds had outlined plans for the brand.
The company said in a statement: “The COVID pandemic disproportionately affected Roti, as 50% of its restaurants were based in downtown business districts— but Roti made it through with the support of investors and consumers only to find itself in a current restaurant climate mired in a consumer-spending downturn.”
Bankruptcies have buffeted the restaurant industry this year, including such companies as One Table Restaurant Brands, parent of Tender Greens, in July,
Red Lobster, which filed for Chapter 11 bankruptcy protection in May, Rubio’s, and Tijuana Flats. Other smaller concepts and franchisees that filed for bankruptcy in the first half of 2024 include Party Fowl, Boxer Ramen, Sticky Fingers, Oberweis Dairy, Foxtrot/Dom’s Kitchen, Melt Bar & Grilled, Kuma’s Corner, Subway’s River Sub LLC and Arby’s Miracle Restaurant Group.
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