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Moe's franchisee Quality Fresca seeks to close 16 locations in Chapter 11
The Palm Beach, Florida debtor generated about $58.9 million in revenue and posted negative fiscal 2025 consolidated EBITDA of $111,204, court filings show.
Mexican fast-food operator Quality Fresca I LLC, a major Moe's Southwest Grill franchisee, has filed for Chapter 11 bankruptcy and is asking the court for permission to close 16 of its restaurant locations, according to Yahoo Finance and court documents. The company, which operates 38 restaurants across Florida, South Carolina, Virginia, and Washington, D.C., cited industry headwinds, increased costs, and declining revenue that have depleted liquidity. Quality Fresca said it wants to reorganize to reach sustainable profitability or sell its assets. Quality Fresca also is seeking up to $1.6 million in debtor-in-possession financing from its ultimate parent and prepetition lender GR Loanco 1 LLC. In a separate motion, it requested to reject 16 Moe's Southwest Grill leases, with plans to close 14 underperforming locations in Florida, one in Virginia, and one in Georgia. The debtor filed its petition on Aug. 4 in the U.S. Bankruptcy Court for the Southern District of Florida. The filing lists $1 million to $10 million in assets and $10 million to $50 million in debt, and it says the business employed 603 workers, including 49 salaried and 554 hourly employees. Quality Fresca reported $26.3 million in revenue in 2026 through June 15 and said it owes about $16 million in secured debt obligations, with franchise agreement defaults recorded on Aug. 5, 2025.