Its been a rough few years for the restaurant business, and there doesnt seem to be an end in sight.Eat This is reporting that Del Taco the No. 1fast-food chain in America, per USA Today's annual Best Fast-Food Chains listhasabruptly shut down 18 locations, all in one state.The reason for the abrupt closures of these locations is the company that owns them,Newport Ventures, lost their financial backing and had to file bankruptcy.Eat This also reveals that Newport Ventures bought 18 Del Taco restaurants in 2023 for $14.1 million. The operator borrowed $11.8 million from National Bank Holdings, with $3 million of that slated to go toward remodels.With that much money on the line, Del Taco and National Bank Holdings were quick to pull the trigger after Newport Ventures had an outstanding unpaid $125,000 fee for 10 restaurants that were set to be built.When that happened, Del Taco pulled the plug on the franchise agreement, which forced Newport Ventures into bankruptcy.The franchises received an email letting them know all locations were closing down.It is with our deepest regret that we must inform you that the company's continued financial challenges have forced us to make the difficult decision to close the stores immediately.But that might not be the full reason that Del Taco shut down these locations.RestaurantBusiness Online states thatDel Taco accused Newport Ventures of significant mistakes made before the locations were shuttered.Del Taco CRO Allen Soongsaid that due to their cavalier approach to health safety, I am left with no choice but to cease operations immediately.It appears to be a result of the unpaid fee, and some health and safety issues that led to the ultimate demise of these 18 Del Taco locations.The franchisee states that these shutdowns are temporary and that they will be back, but its unclear if thats true in light of Del Tacos statement.Get our free mobile appOnce-Beloved Fast Food Items That No Longer ExistThese defunct fast food items have gone down in history. Wouldnt you love to eat them again?Filed Under: Chain Restaurants, Fast Food, FoodCategories: Original Features
