A major Moe's Southwest Grill franchisee has filed for Chapter 11 bankruptcy protection and is seeking to close 16 restaurants across the Southeast, most of them in Florida, according to multiple reports.
Quality Fresca I LLC, a Palm Beach-based company that once operated 69 Moe's restaurants, filed for bankruptcy Aug. 4 in the U.S. Bankruptcy Court for the Southern District of Florida, The Real Deal said.
The company currently operates 38 Moe's locations across Florida, South Carolina, Virginia and Washington, D.C., National Restaurant News reported.
The bankruptcy filing comes after years of declining sales, rising food and shipping costs, labor shortages and inflation put pressure on the franchisee's finances, the Independent reported.
Among the 16 restaurants that Quality Fresca is seeking to close, are these 14 Florida locations, according to Fast Company:
The list also includes one restaurant in Alexandria, Virginia, and one in Brunswick, Georgia, Fast Company said.
Quality Fresca became one of Moe's largest franchisees in 2020, when it acquired 67 restaurants across several states, reports said. It added two more locations in 2021, bringing its total to 69.
But the expansion came just as the COVID-19 pandemic was disrupting the restaurant industry.
The company subsequently began closing underperforming restaurants, shutting down 19 locations between May 2021 and December 2025, leaving it with 50 restaurants at the end of last year, reports said. It has since closed another 12, bringing its operating footprint to 38 locations.
Quality Fresca reported between $10 million and $50 million in liabilities and between $1 million and $10 million in assets in its bankruptcy petition.
The company generated about $58.9 million in revenue in fiscal 2025, but reported negative consolidated EBITDA of $111,204, according to TheStreet. It generated another $26.3 million in revenue through June 15 of this year.
The company owes approximately $16 million in secured debt obligations and is seeking up to $1.6 million in debtor-in-possession financing from its parent company, GR Loanco 1 LLC, to help it continue operating while it restructures, reports said.
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