Taco Bueno filed for Chapter 11 bankruptcy protection Tuesday as part of a restructuring deal aimed at helping turn around the financially struggling fast food chain.
In a press release, the Farmers Branch-based company announced it had entered an agreement with Taco Supremo, LLC, an affiliate of Dallas-based Sun Holdings.
Taco Bueno hopes the move will “enable the company to better compete in the Tex-Mex quick service restaurant sector.”
Sun Holdings, also based in Dallas, has more than 800 franchise locations in eight states and includes restaurants such as Golden Corral, Burger King, Krispy Kreme and Popeye's.
There were no immediate plans to close stores, the company said.
As part of the announced deal, Taco Supremo acquired all of Taco Bueno’s outstanding bank debt and agreed to provide up to $10 million in extra financing.
“We are pleased to have reached this agreement with Sun Holdings on the terms of a financial restructuring that will strengthen our balance sheet and position our company for continued success,” said Taco Bueno Chief Executive Officer Omar Janua.
Taco Bueno has locations in Texas, Oklahoma, Louisiana, New Mexico, Arkansas and Kansas.