Overview
- A group of U.S. employees filed a complaint in an Illinois court alleging the chain closed all six Chicago-area restaurants without required advance notice and informed staff only via an internal messaging platform.
- The plaintiffs say roughly 500 workers were affected and are seeking unpaid wages and benefits for 60 days plus the maximum civil penalty under federal and Illinois WARN laws.
- Guzman y Gomez told Reuters it is aware of the legal action and is confident it met its legal obligations to U.S. employees and declined further comment.
- The closures follow the company's recent announcement that it was exiting the U.S., a move the chain attributed to poor sales and that ended its short-lived expansion there.
- Investors briefly bid up the stock after the U.S. exit news and shares remain higher since that announcement, while the lawsuit could create financial liabilities for back pay and penalties and prompt closer scrutiny of the chain's rapid growth plans.