Tallulah’s Taqueria Files for Chapter 11 Bankruptcy

News Summary

Tallulah’s Taqueria, a beloved Tex-Mex restaurant in Providence, R.I., has filed for Chapter 11 bankruptcy with debts over $977,000. Owned by Kelly Ann and Jacob Rojas, the restaurant listed significant financial obligations, including debts to various creditors and state taxes. The filing highlights the challenges faced by independent eateries amid economic pressures. Despite the bankruptcy, employees will continue to receive their wages. As a staple in the Providence food scene since 2014, the outcome of this case is of great importance to the local community and staff.

Providence, R.I. – Tallulah’s Taqueria, a popular Tex-Mex restaurant in Providence, has filed for Chapter 11 bankruptcy protection, listing debts totaling over $977,000 to numerous creditors. The filing was made by owners Kelly Ann and Jacob Rojas in U.S. Bankruptcy Court earlier this week, following financial challenges that have prompted the restaurant to seek legal relief. The news was first reported by local business media.

The bankruptcy petition details significant financial obligations, with major debts including approximately $338,000 owed to Navigant Credit Union and $180,000 in state taxes. Other debts comprise roughly $130,000 in rent to Farm Fresh Rhode Island, $94,000 to On Deck Capital, $64,000 to Baldor Specialty Foods, and $33,000 to American Express. Smaller debts owed to various businesses, attorneys, and accountants have also contributed to the total liabilities.

As part of the bankruptcy process, it was revealed that Tallulah’s Taqueria owes over $11,000 in wages, tips, benefits, and taxes to its 20 employees. Fortunately for staff, a judge has authorized the restaurant to continue paying employees from its existing pre-petition bank account, ensuring that their wages are not interrupted during the bankruptcy proceedings.

Tallulah’s Taqueria has been a staple in the Providence culinary scene since its establishment in 2014, famous for its Chicano-style tacos, tortas, quesadillas, and burrito bowls. The restaurant emphasizes the use of house-made tortillas and locally sourced ingredients, leading to a loyal customer base. It operates from multiple locations, including a primary site off Ives Street, a secondary location inside Farm Fresh Rhode Island on Sims Avenue, and a seasonal spot on Narragansett Avenue in Jamestown.

The filing for bankruptcy reflects broader challenges facing independent restaurants, particularly in light of economic pressures such as increasing costs and changes in consumer behavior. Various local eateries have reported similar struggles, highlighting the test of resilience within the restaurant industry during fluctuating economic environments.

While efforts are underway to manage the official bankruptcy process, Tallulah’s Taqueria has not publicly commented on the situation following the filing. Attempts to reach out for further information regarding their plans to recover and restructure the business have not yielded any responses as of yet.

The outcome of this bankruptcy case will be of interest not only to the employees and creditors involved but also to the local community that has supported Tallulah’s Taqueria for nearly a decade.

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