Wednesday, June 12, 2024
HomePopularIs Taco Bell Filing For Bankruptcy

Is Taco Bell Filing For Bankruptcy

B Plaintiff’s Assertion Of Laches Is Not Dispositive

Consumer headlines Jan. 11, 2019: New veggie Taco Bell menu, FCA recall

Plaintiff asserts the doctrine of laches applies and precludes defendants from relying on the equitable doctrine of judicial estoppel.

In this circuit, laches is a negligent and unintentional failure to protect one’s rights. A party asserting laches must show: lack of diligence by the party against whom the defense is asserted, and prejudice to the party asserting it.United States v. City of Loveland, Ohio,621 F.3d 465, 473 .

Plaintiff may not be able to raise laches in opposition to an affirmative defense. The United States Court of Appeals for the Tenth Circuit has stated that laches is available only as a bar to affirmative relief. It cannot be invoked by plaintiff to bar rights asserted by defendant merely by way of defense.See N. Pac. Ry. Co. v. United States,277 F.2d 615, 624 . Furthermore, there is some indication that the United States Court of Appeals for the Sixth Circuit limits laches to use as an affirmative defense that must be pled in response to a pleading. See Broad. Music, Inc. v. Roger Miller Music, Inc.,396 F.3d 762, 783 ); Ruiz v. Shelby Cnty. Sheriff’s Dep’t,725 F.2d 388, 393 ; see also Coach Inc. v. Hayes & Co., No. 1110DLB, 2012 WL 1221873, at *6 .

Accordingly, even if the defense of laches is available, Plaintiff has not shown that she is prejudiced by any delay by Defendant in asserting judicial estoppel. Plaintiff’s asserted defense of laches, therefore, is not dispositive.

Pizza Hut’s Largest Us Franchisee Files For Chapter 11 Bankruptcy

NPC International, the largest U.S. franchisee of Yum Brands Pizza Hut, filed for Chapter 11 bankruptcy on Wednesday.

The company operates more than 1,200 Pizza Huts and nearly 400 Wendys restaurants.

In contrast to most of the restaurant industry, Pizza Hut is one of the rare companies to report same-store sales growth in April and May, thanks to higher digital and delivery sales. But the coronavirus pandemic follows years of slumping U.S. sales for Pizza Hut, and NPC has struggled with a debt burden of roughly $1 billion.

Seeking Chapter 11 protection means that NPC can continue to operate while it tries to turn business around. Pizza Hut said in a statement that NPCs locations of the pizza chain continue to serve food. The franchisee pre-negotiated a restructuring agreement with most of its lenders.

While NPCs Chapter 11 filing was expected, we view it as an opportunity to create a better future for NPCs Pizza Hut restaurants, a Pizza Hut spokesperson said in a statement. As NPC works through this process, we support an outcome resulting in an organization with a lower, more sustainable level of debt, ownership focus on operational excellence and a greater level of restaurant investment.

In 2019, NPC saw its debt slide further and further into junk territory after credit downgrades from S&P Global Ratings and Moodys. Both ratings agencies downgraded the franchisees debt in February after it did not make interest payments due to lenders on Jan. 31.

Around 100 Ihop Locations Are Expected To Close In The Next Six Months

During the third quarter, 16 IHOPs closed.

“While IHOP anticipates closing just under 100 of our underperforming restaurants in the next six months, we are optimistic about the continued improvement in sales numbers and are continuing to see improvement in our off-premise business, which has nearly doubled since the start of the pandemic,” a Dine Brands spokesperson said in a statement to Restaurant Business.

Recommended Reading: How Many Bankruptcies Has Donald Trump Filed

Plaintiff Assumed A Position That Was Contrary To The One She Asserted Under Oath In The Bankruptcy Proceedings

o support a finding of judicial estoppel, we must find that … assumed a position that was contrary to the one that asserted under oath in the bankruptcy proceedings….Stephenson,700 F.3d at 272 . t is well-established that at a minimum, a party’s later position must be clearly inconsistent with its earlier position for judicial estoppel to apply.Lorillard Tobacco Co. v. Chester, Willcox & Saxbe, LLP,546 F.3d 752, 757 ).

Plaintiff’s position in the instant litigation is clearly inconsistent with the position that she asserted under oath in the bankruptcy proceedings. See Lorillard Tobacco Co.,546 F.3d at 757. In her Complaint, Plaintiff prays that judgment be entered against the Defendant, in the amount of Five Hundred Thousand Dollars . In the bankruptcy proceeding, however, Plaintiff, asserted the clearly inconsistent position that her claim against Defendant was valueless. It is undisputed that Plaintiff stated under oath in Schedule B that her claim against Defendant was worth zero dollars. Furthermore, it is undisputed that Plaintiff never amended … the schedules she filed in the to advise the bankruptcy court that she believed her claim against Defendant had value.

Jcpenney To Reportedly File For Bankruptcy

FACT CHECK: Is Taco Bell Closing All Stores?

JCPenney is reportedly planning to file for bankruptcy, sources have said. According to a report from the Today Show, unnamed individuals close to the situation have said that the department store has plans to file for bankruptcy. This would be a reality in the event that negotiations with financial investors do not foster an agreement. The sources stated that the filing could come by Friday, but that it may be delayed if the negotiations carry over into the weekend.

A follow-up report from CNN stated that the company may have another week to make the filing. A spokesperson declined to comment, but in a financial filing on Friday JCPenney stated, “The company had entered into such grace period in order to evaluate certain strategic alternatives, none of which have been implemented at this time and which continue to be considered.” While the coronavirus has no doubt had an impact on the company, Today notes that JCPenney’s sales have fallen annually since 2016, resulting in the company now planning to close between 180 to 200 stores.

JCPenney has been hoping to avoid bankruptcy, but at this point it seems likely. The company has been working on getting a $450 million loan from lien lenders that would help it through the bankruptcy process. However, this loan would come with provisions that will require JCPenney to achieve specific goals in order to be granted the second half of the loan.

You May Like: How To Access Bankruptcy Court Filings

Boston Market Closed 45 Locations In 2019

The fast-casual dining chain has faced financial trouble since as far back as 1998, when it filed for bankruptcy. It has also seen declining sales in recent years. According to Mashed, Boston Market’s then CEO, Frances Allen, said last year that the closures were necessary in order for the company to have a shot at surviving in the long-term.;

A Plaintiff Did Not Lack Knowledge Of The Factual Basis For The Claim Amount

In determining whether conduct resulted from mistake or inadvertence, this court considers whether … lacked knowledge of the factual basis of the undisclosed claims….Stephenson,700 F.3d at 272 .

Plaintiff did not lack knowledge of the factual basis making her claim valuable. It is possible that a plaintiff’s claim for damages could be valueless until after her bankruptcy case closed if, for example, medical problems developed only after the close of the bankruptcy case. It is undisputed, however, that, n July 18, 2008, Plaintiff initiated a lawsuit … for her alleged slip and fall at the Taco Bell restaurant … seeking damages up to the jurisdictional limits of up to $25,000. It is also undisputed that the lawsuit was filed before her bankruptcy case was closed: On September 23, 2008, the issued its Final Decree/Order, closing the . .

Furthermore, the documents cited in Defendant’s Statement of Undisputed Material Facts, indicate that Plaintiff had information indicating that her claim was valuableand, in fact, worth more than $10,000when she signed her Schedule B form, on January 4, 2008. In the documents she signed on January 4, 2008, Plaintiff appears to have claimed at least $8,752.39 in medical debt related to her injury. In addition, at the time she made these filings, Plaintiff appears to have received medical bills related to her injury indicating at least an additional $4,496.20 in medical expenses related to her injury.

Recommended Reading: Has Mark Cuban Ever Filed For Bankruptcy

Some Of Their Most Popular Dishes Were Dreamed Up By High School Kids

Taco John’s has a long history of working with young people. Not only were many of their franchises started by new high school graduates, but high school students also help come up with the menu. Every year, Taco John’s hosts the Taco John’s Culinary Cup competition for high school students in Wyoming and Colorado. Winners not only get a small scholarship but also see their creations appear as limited items on the Taco John’s menu.;

“They make items that they want to eat and they think their friends will like to eat,”;Bob Karisny, Vice President for Menu Strategy and Innovation said on the;Taco John’s website.;”When you have dozens of competitors, you see patterns emerge in the ingredients they use and the types of foods they make. That helps us plan menu items that appeal to young diners and help our franchisees win their business.”

Bone V Taco Bell Of America Llc

Drake Bell Files for Bankruptcy, Owing Over a Million – The Buzz

holding the undisputed facts did not indicate an absence of bad faith because “the evidence indicates that Plaintiff never attempted to correct her misstatement.”

holding a plaintiff knew of the factual basis of her claim because she claimed “medical debt related to her injury”

holding a plaintiff knew of the factual basis of her claim because she claimed “medical debt related to her injury”

holding that a chapter 7 debtor who claimed an invalid exemption in a cause of action had standing to pursue that litigation, because the cause of action was excluded from the bankruptcy estate after no party in interest objected timely to the exemption

finding clearly inconsistent position for purposes of judicial estoppel where plaintiff did not conceal the existence of the claim, but her assertion that the claim was valueless directly conflicted with her lawsuit claim for $500,000

explaining the Sixth Circuit Court of Appeals has only held laches can be invoked in a pleading and thus “laintiff may not be able to raise laches in opposition to an affirmative defense”

You May Like: Can I File Bankruptcy Without My Spouse Knowing

In September Luby’s Announced Plans To Dissolve The Business And Sell Its Remaining 77 Locations

In March, Houston-based chain Luby’s temporarily closed 35 restaurants as a result of the pandemic. Now, the chain is looking to liquidate.

In July 2019, Luby’s, which also owns Fuddruckers and Cheeseburger in Paradise, closed several restaurants to try and pay off debt, according to Mashed. Months later, in November 2019, CEO Chris Pappas said, “We are not pleased with our shareholder value, same-store sales, guest traffic results, or corporate overhead.”

Taco Bell Files For Bankruptcy Closing All Restaurants Fiction

AdvertisementsSummary of eRumor:Taco Bell has filed for bankruptcy and will close all Taco Bell locations in 2017 and 2018.The Truth:A website that encourages users to prank friends with hoax news reports is behind the latest rumor that Taco Bell has filed for bankruptcy and will close all locations in 2017 and 2018.The rumor started at, a website that allows readers to create fictitious headlines and to then share them on Facebook with friends and families. Then, when people click on the link to read the actual story, its made clear that theyve fallen for a prank:

National Report

You May Like: What Is Epiq Bankruptcy Solutions Llc

Dozens Of Buyers Are Eyeing Bankrupt Npc International Restaurants

More than 50 potential buyers are eyeing at least a piece of the massive number of restaurants operated by the bankrupt Wendys and Pizza Hut franchisee NPC International, setting a stage for a remarkably competitive set of auctions that start later this month.

One of those bidders is the biggest restaurant franchisee in the U.S., Flynn Restaurant Group, which last week was approved as the stalking horse bidder for all of NPCs restaurants for $816 millionover objections from Wendys, which has not approved Flynn as an operator of the nearly 400 units in its system that are up for sale.

Still, the Flynn bid is already 12.5% higher than the $725 million NPC initially hoped to get in a sale of the assets from a trio of auctionsone for each of the Wendys and Pizza Hut operations and another for the whole company.

At least 26 potential buyers are eyeing some of the Wendys restaurants, while at least 32 are eyeing some Pizza Hut locations, according to documents filed with the U.S. bankruptcy court.

NPC is the largest franchisee in both the Wendys and Pizza Hut systems, operating 900 of the pizza chains units after the closure of 300 in recent months. The franchisee filed for Chapter 11 bankruptcy in July with about $900 million in debt, and the potentially competitive bid process increases the likelihood that lenders recover all of that.

Yet Wendys objected to Flynns bid for a bigger reason: Its ownership of both Arbys and Panera Bread franchises.

Salad Chain Sweet Tomatoes Announced It Would Be Permanently Closing All 97 Of Its Locations Nationwide Due To The Coronavirus

Taco Bell apologizes after sign appears at restaurant ...

John Haywood, CEO of Garden Fresh, the parent company of Sweet Tomatoes and its sister buffet chain Souplantation, told the San Diego Union-Tribune, “The FDA had previously put out recommendations that included discontinuing self-serve stations, like self-serve beverages in fast food, but they specifically talked about salad bars and buffets. The regulations are understandable, but unfortunately, it makes it very difficult to reopen. And I’m not sure the health departments are ever going to allow it.”

Recommended Reading: Has Mark Cuban Ever Filed For Bankruptcy

Are Brio And Bravo Going Out Of Business

FoodFirst Global Restaurants, the parent company of Brio and Bravo restaurants, filed for Chapter 11 bankruptcy protection in April 2020 and temporarily closed over 70 of its over 92 locations. In June 2020, it was announced that Earl Enterprises, owner of such restaurant brands as Buca di Beppo, Planet Hollywood and Bertuccis, had acquired the company and planned to reopen the restaurants.

They Were Once Sued By The Aclu

Taco John’s may be a beloved institution but, like most companies, they have seen their share of troubles. One particularly grim incident in their history occurred in 2014 after they found themselves sued by the American Civil Liberties Union. The ACLU filed the suit on behalf of a Taco John’s employee, 16-year-old Tyler Brandt, who claimed that he was forced to wear a name tag that said “GAYTARD” at a Taco John’s franchise in Yankton, South Dakota. Humiliated by the name tag, Brandt quit his job.

“We at Taco Johns are deeply concerned about the reported incident in Yankton, and we share the belief with Tyler that discrimination is wrong, wherever it takes place,” wrote Taco John’s . “Please understand, however, that we do not control day to day operations of our franchisees, or their personnel decisions. We will do everything we can to minimize the possibility that incidents of the nature alleged do not occur anywhere in our franchise system.”

Recommended Reading: How Many Times Has Donald Trump Declared Bankruptcy

Is Sizzler Going Out Of Business

In September 2020, Sizzler USA filed for Chapter 11 bankruptcy protection to restructure its debt and lease terms. The announcement only impacts the company-owned restaurants and not the more than 90 franchise locations. No restaurant closing were announced, but some locations are temporarily closed and some locations have been reported to have permanently closed.

It Wasn’t Always Called Taco John’s

Inmate Claims Taco Bell Stole Taco Idea

The food truck that Turner sold his now-legendary Mexican-inspired food out of was the start of the franchise we now know and love as Taco John’s, but Turner gave his business a different name. The business was originally started as Taco House. Recognizing that Turner had launched a successful brand, Harold Holmes, the man who built Turner’s first food truck, bought the franchise rights to Taco House along with his business partner, James Woodson . They re-named the business Taco John’s in order to pay homage to Turner’s contribution to the venture.

When growing the business, Woodson and Holmes first focused on smaller towns. Some of the earliest Taco John’s were started in Rapid City, South Dakota; Scottsbluff, Nebraska; and Torrington, Wyoming. The business continued to expand throughout the Northern Rockies and Upper Midwest. For a few years, Taco John’s was so successful that Holmes was building a store every week.

Don’t Miss: How To File Bankruptcy In Wisconsin

Is Dunkin Going Out Of Business

Dunkin is not going out of business. In July 2020 the company announced they would be closing an estimated 800 locations in 2020. While specific locations were not disclosed, over half of the closures are part of their February announcement that by the end of 2020 they would be permanently closing 450 limited-menu Dunkin cafes that are located inside Speedway convenience stores. The company operates over 9,000 locations.

Are Pizza Hut And Wendys Going Out Of Business

In the beginning of July 2020, NPC International Inc., a large franchisee of Pizza Hut and Wendys restaurants, filed for Chapter 11 bankruptcy protection. The company operates over 1,200 Pizza Hut and over 380 Wendys locations across the United States. The restaurants will continue operations as the company seeks to restructure its debts. There are almost 8,000 Pizza Hut and over 6,000 Wendys restaurant locations in the U.S.

Read Also: Bankruptcy And Apartment Rental


Popular Articles