Aussie fast-food chain facing legal action after shutting down US operations
Former workers say the company gave no 60-day notice before closing eight Chicago-area restaurants, and more than 500 employees were affected, the lawsuit says.
- On Friday, Australian-founded restaurant chain Guzman y Gomez abruptly closed all eight Chicago-area locations, prompting former workers to file a federal class action lawsuit on Sunday alleging violations of the Worker Adjustment and Retraining Notification Act.
- Founder and CEO Steven Marks stated the company evaluated the business trajectory with the board, concluding the path to required performance 'was not there,' prompting the exit from the United States market after six years.
- Shift leader and lead plaintiff Yomira Gomez said employees received no advance notice before operations ceased Thursday night, leaving staff like Joseph Guzman facing financial instability and limited severance pay.
- While the lawsuit claims GYG failed to provide the mandated 60 days' notice, investors reacted positively to the US exit, sending the company's share price soaring 20 per cent on Friday.
- Marks reaffirmed the company's focus on its long-term target of 1,000 restaurants across Australia, as the closure leaves Chipotle as the dominant player in the American fast-casual Mexican market.
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Former Guzman y Gomez workers file class action lawsuit over alleged labor law violations
Former workers of Guzman y Gomez are alleging the company violated Illinois’ Worker Adjustment and Retraining Notification (WARN) Act by failing to give adequate notice before closing its eight Chicago-area locations and filed a lawsuit Sunday in federal court. The class action lawsuit, filed in the United States District Court Northern District of Illinois, seeks seeks only damages and other relief permitted under the state and federal WARN Act…
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New York PostChipotle rival Guzman y Gomez Mexican Kitchen closes all US restaurants
Guzman y Gomez Mexican Kitchen, an Australian-born Chipotle rival that once planned to open hundreds of U.S. locations, has abruptly closed all of its American restaurants after six years in the Chicago area."All GYG USA restaurants permanently closed," a message on the company’s U.S. website says. "Effective from May 22nd, GYG USA restaurants will cease trading. Thank you for your support."The chain also announced the move on Instagram, thankin…
The Mexican fast food chain Guzman and Gomez Mexican Kitchen, born in Australia and considered one of Chipotle's competitors, suddenly closed all their restaurants in the United States after operating for six years in the Chicago area. The company arrived in the country with big expansion plans, but finally decided to withdraw from the US market. On the official website of the company in the United States appeared a brief message confirming the …
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