Swatch shuts stores after Audemars Piguet Royal Pops launch
Swatch closed some stores after aggressive crowds surged for the Audemars Piguet Royal Pops pocket watch launch.
Former employees with Guzman Y Gomez launched a class action lawsuit after the Mexican food chain shuttered all eight of its U.S. locations. The restaurants were all located in the Chicago metro area.
The suit, filed with Chicago firm Haseeb Legal, claims the chain closed the restaurants without the 60 day notice required by federal and Illinois law.
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Mexican restaurant chain exits US
The chain announced the closures to the public on its website and social media, saying the move was effective May 22.
“After six years of burritos and big dreams in Chicagoland, we’ve made the difficult decision to close our US restaurants,” part of the message reads. “If you’re ever in Australia, Singapore or Japan, come find us – we’ll have your favs waiting for you.”
The company was founded in Australia in 2006 by a pair of native New Yorkers, opening restaurants in Singapore and Japan in the early-to-mid 2010s. The chain expanded to the U.S. in 2020, with plans to broaden its reach across the country in the coming years, according to Fox Business.
The entry point ended up being Chicago, resulting in eight locations across the Chicagoland area.
Co-founder Steven Marks reportedly said the following in an Australian Securities Exchange announcement, according to Business News Australia: “I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum.”
Marks went on to say, “Having spent the last three months in the US, I realized this was going to take significantly more time and capital than we had expected. In assessing the trajectory of the current network, the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.”
The chain reaffirmed its long-term goal of opening 1,000 Australian restaurants, according to the outlet.
Former employees launch class action suit
“You deserved sixty days. You got zero,” reads large text on the Haseeb Legal page.
Workers said the first they heard of the closures was an internal message posted May 21 on the company’s message platform, according to the Guardian.
The message allegedly read, “After careful consideration, we have made the difficult decision to exit the US market. This means we will be closing all our restaurants from today.”
A company spokesperson told the outlet the firm “is aware of legal action filed in the United States and we are confident we have met all of our legal obligations to our US employees.”
The suit is seeking pay and benefits for up to 60 days for every affected employee – estimated to be more than 500 by the law firm – and is seeking a trial by jury, according to the Guardian.
