A group of American employees has sued the company Guzman y Gomez GYG.AX, listed on the Sydney Stock Exchange, in an Illinois court, alleging that the Mexican-themed fast food chain did not notify its staff before closing all its restaurants in Chicago, according to a court document released on Monday.
Guzman y Gomez, a Mexican-themed restaurant chain whose global growth plans fueled a spectacular IPO in 2024, announced last week that it was withdrawing from the American market due to poor sales.
“GYG is aware of the legal proceedings initiated in the United States, and we are confident that we have fulfilled all our legal obligations to our American employees. We are unable to make any further comments on this matter,” a spokesperson told Reuters.
The complaint alleges that the company definitively closed its six sites in the Chicago area last Thursday and immediately laid off staff without notice. Employees were only informed of the closure late in the evening via an internal messaging platform.
The complaint estimates that around 500 employees could be affected by these sudden closures, according to the court document.
The plaintiffs are claiming 60 days of unpaid wages and benefits under federal and state laws on Worker Adjustment and Retraining Notification Acts, as well as a maximum civil penalty provided by law, among other demands.
Guzman’s stock surged over 10% at Monday’s opening before giving up its gains to trade at a steady price of 19.805 Australian dollars at 05:43 GMT, still up 24% since announcing its withdrawal from the American market on Friday.
