Renowned restaurant chain goes bankrupt: request for liquidation, rising costs were the deciding factor
The American fast-food chain Salad and Go has filed for protection from creditors and will cease operations entirely. The chain explains that rising costs, a hit to demand, and a parasite outbreak in the salad industry led to the collapse.
The drive-thru chain Salad and Go, based in Phoenix, Arizona, filed on Monday for receivership and protection from creditors (Chapter 11) at the bankruptcy court for the Southern District of Texas, Houston Division. As part of the process, the company announced that it will permanently close all its branches, with the last meals at the chain to be served on Wednesday.
The chain, which was founded in 2013 in the city of Gilbert, Arizona, expanded over the years and spread across several states in the USA. However, the company explained that persistent pressure on consumer demand, past strategic growth challenges, and rising costs led to severe budgetary distress.
Another factor that worsened the situation was an outbreak of the parasite Cyclospora in the salad industry in July. Although Salad and Go was not linked to the contamination in question, the event severely damaged consumer confidence and led to a further decline in revenue.
"This is a painful day for everyone who built, worked at, and loved Salad and Go," said the company's CEO, Mike Tattersfield, in an official statement. "Our mission came to life every day thanks to an exceptional team, and was embraced by guests who made us part of their daily routine. We are proud of what we built together and thank every team member, guest, and partner who believed in us."
