GREENVILLE, SC — Matador Restaurant Group, the Greenville-based franchisee for Del Taco, has filed for bankruptcy after grappling with plummeting sales, surging costs, and burdensome merchant cash advance (MCA) debt. The move casts uncertainty over the brand’s limited footprint in South Carolina, where just one location currently operates.
Franchisee Facing Major Financial Pressure
Matador Restaurant Group operates 22 Del Taco locations across the region and is owned by Red Door Brands, a group that also franchises Arby’s, McAlister’s Deli, and Little Caesars. Bankruptcy documents show the group holds between $1 million and $10 million in both assets and liabilities, and more than $2.7 million in MCA-related debt, as reported by Verdict Food Service.
Court filings indicate that Matador’s financial decline began in late 2024, with the combination of “company growth, an unexpected decline in sales and rising operational costs,” leading the company to seek high-risk loans to stay afloat. However, the aggressive repayment schedules and fees associated with MCA loans only worsened the situation.
“The MCA loans put [Matador] into further financial distress due to the excessive fees, excessive interest rate, and aggressive payback schedules,” the filings state.
A Broader Crisis for Del Taco
The bankruptcy of its Greenville franchisee is just the latest chapter in a broader crisis for Del Taco, which was acquired by Jack in the Box in 2022 for $585 million. Since the acquisition, the taco chain has experienced five consecutive quarters of declining same-store sales, according to Restaurant Business…