Wednesday, June 12, 2013
The plan to keep a handful of local Taco Tico restaurants open appears to have failed. Late last month, a bankruptcy court granted complete relief to one of Taco Tico's investors.
The investment group has a stake in getting some sort of recovery for the failed Taco Tico businesses in Wichita. Today, a notice of sale of assets is being publicized, indicating most Taco Tico locations in Wichita are done.
There are six Taco Tico stores in Wichita That are affected. Others are in Derby, Arkansas City, Topeka and Dodge City. Taco Tico franchisor Ajax International had tried to stop this from happening by filing for bankruptcy in March.
The order states that Ajax failed to gain insurance on its stores after being ordered to do so in early March.
The State of Kansas shut down the affected Taco Tico locations earlier this year for non-payment of more than $400,000 in sales tax.
Attorneys for the investor are publicizing a 'notice of sale' in an effort to recover some collateral.
There are some Taco Tico restaurants that are operated by a different franchosee and are not affected by any of this. Those stores are in Augusta, El Dorado and Newton.
We spoke with Ajax owner Mohmood Karim's attorney. He said he was filing to dismiss the bankruptcy case today. It is not clear yet whether Karim plans to continue trying to get the business back up and running or not.