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Del Taco’s Georgia locations have abruptly closed after the restaurant’s franchise owner filed for Chapter 11 bankruptcy protection, the company announced.
As of Friday, Feb. 20, when searching for the American-Mexican fast-food chain’s Georgia location, the website says, “Sorry, this location no longer exists.”
Del Taco said in an emailed statement on Feb. 20 that its franchisee, which operates stores in Atlanta, Columbus, Macon and Chattanooga (Fort Oglethorpe), has closed all 14 stores.
“This closure was made without prior notice to Del Taco,” the company said in a statement. “Our franchisees are currently in bankruptcy proceedings and we are actively considering options to reopen these stores as soon as possible. Updates will be shared once plans are finalized.”
Del Taco was owned by Jack in the Box from 2021 until late 2025, when the company was acquired in December 2025 by Yadav Enterprises, which operates more than 300 franchised restaurants across the United States. At the time, Del Taco said it operated more than 600 stores across the United States, with most restaurants in California, where the company is based.
A Redditor shared on Tuesday, Feb. 17, that a store in Warner Robins, Georgia, about 32 miles south of Macon, has closed.
A user wrote on Feb. 17: “My manager told me the Del Taco location in Georgia is closing as of today. There’s been no news about this. Does anyone know what’s going on? She said we need to file for Chapter 11 bankruptcy.”
A franchise owner of 22 Del Taco locations in Georgia and Alabama filed for Chapter 11 bankruptcy in South Carolina in July 2025, according to court records obtained by USA TODAY.
USA TODAY reached out to the franchise owner, Matador Restaurant Group, but did not immediately receive a response as of Feb. 20. The company has approximately 336 employees, according to the documents.
Del Taco franchise owner takes out high-interest loan to combat financial difficulties
The restaurant group said in a July 2025 court document that the company was experiencing “cash flow issues” and had previously closed two unprofitable locations.
The restaurant group’s financial crisis began in late 2024 due to the company’s growth, “unexpected sales declines, and increased operating costs,” according to court filings.
After discussing the issue with its broker, the company took out a Merchant Cash Advance (MCA) loan to resolve the issue. According to the California Department of Financial Protection and Innovation, MCA loans require businesses to “prepay a sum of cash in exchange for a portion of the business’s future sales or income.”
The restaurant group said the MCA loan “put the company into further financial distress due to excessive fees, excessive effective interest rates, and aggressive repayment schedules.”
“Despite efforts to reduce costs, (the restaurant group’s) revenues have not kept up with its MCA obligations,” the company wrote in a statement, adding that as of July 15, 2025, the company had 10 MCA loans from nine different creditors.
The restaurant group said it had $2.701 million in debt, according to documents.
Another franchisee, Newport Ventures, abruptly closed 17 of its 18 Colorado stores in March after problems with Del Taco and a bankruptcy filing, the Pensacola News Journal, part of the USA TODAY Network, reported. Del Taco confirmed to USA TODAY in June 2025 that 17 of its stores had reopened.
How long ago did the Del Taco closures begin?
Online reports of Del Taco closings in Georgia date back to at least August 2025, when a Redditor and fan of the chain tried to visit the Kennesaw location, sharing that “the doors were locked and signs were posted everywhere indicating the store was permanently closed.”
“This is the second DT in the city to close in recent months,” the user wrote. “GA has already lost Del Taco once, and I fear we are heading into a second dark age.”
Another user added that they also visited a Georgia store in August, this time in Morrow, and found it boarded up as well.
Elsewhere in the U.S., Del Taco locations in Florida have closed. Pensacola Del Taco District Manager Kimberly Galasi previously confirmed to the Pensacola News Journal that five Del Taco locations in Florida will be closing.
The Tallahassee, Fla., store has closed about a year after opening, according to the Tallahassee Democrat, part of the USA TODAY Network. According to the Democratic Party, a note posted at the Del Taco drive-thru read, “This location is currently closed. Thank you for your support!”
But while franchise closures have been reported in multiple states, Del Taco has announced expansion plans.
According to the Louisville Courier-Journal, which is also part of the USA TODAY Network, Del Taco announced plans to open five stores in Louisville, Kentucky, in summer 2025 with new franchisee Karan Pandher.
Del Taco said the first store will likely have a grand opening by 2027, according to the Courier-Journal.
Contributor: Kyla A Sanford, Tallahassee Democrat. Brittany Misencik, Pensacola News Journal. Amanda Hancock, Louisville Courier-Journal
Saleen Martin is a reporter for USA TODAY’s NOW team. She is from Norfolk, Virginia (757). Email sdmartin@usatoday.com.
