Bankrupt Taco Del Mar was sold at auction last week, and Connecticut-based Franchise Brands had the winning bid of $3.25 million.
The sale of the Mexican food chain operator and franchisor must still be approved by a bankruptcy judge. Taco Del Mar has lost money for several years, and now has debt in excess of $3 million.
Taco del Mar is an example of an aggressively promoted franchise concept that grew fast and crashed hard. The Seattle-based quickservice restaurant chain grew from 74 locations in 2003 to 270 locations in 2008. More than 200 shops closed between 2005 and 2009.
According to a filing in U.S. Bankruptcy Court, Taco Del Mar owns roughly 22 corporate stores in the U.S., Canada and Guam. According to a recent company press release, “Taco Del Mar can be found in more than 200 locations.”
According to its website, Franchise Brands was founded “To acquire an interest in a diverse portfolio of businesses and expand them
through franchising.”
According to FranchiseBrandsLLC.Com:
Based in Milford, CT, Franchise Brands, LLC was created in 2005 with the support and guidance of the founders of SUBWAY® restaurants. It was founded on a basic principle: to invest in small and mid-market companies with experienced management. Companies may currently be franchising or demonstrate the potential to do so.
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Sources: Seattle Times, FranchiseBrandsLLC.Com
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