May 25 (Reuters) – A group of U.S. employees have sued Sydney-listed Guzman y Gomez in an Illinois court, alleging the Mexican-themed fast-food chain did not give prior notice to staff before closing all its Chicago restaurants, a court document showed on Monday.
Guzman y Gomez, a Mexican-themed restaurant chain whose global growth plans powered a blockbuster share market listing in 2024, last week said it was quitting the U.S. due to poor sales.
“GYG is aware of legal action filed in the United States, and we are confident we have met all of our legal obligations to our U.S. employees. We are not in a position to provide further comment on this matter,” a spokesperson told Reuters.
The lawsuit alleges the company permanently closed all six of its Chicagoland locations last Thursday and immediately terminated staff without warning. Workers were only notified of the closure via an internal messaging platform late that evening.
The complaint estimates about 500 employees could be affected due to the abrupt closures, the court document showed.
The plaintiffs are seeking 60 days of unpaid wages and benefits under the federal and state Worker Adjustment and Retraining Notification Acts, and a maximum civil penalty under the act, among others.
Guzman shares leapt over 10% at the open on Monday before surrendering gains to trade flat at A$19.805 at 0543 GMT, though still up 24% since its U.S. exit announcement on Friday.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Harikrishnan Nair)
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