A class action lawsuit was lodged in an Illinois District Court by a cohort of U.S. employees who say Guzman y Gomez did not provide a 60-day notice ahead of the closure of its United States operations, according to a court filing on Monday.
The plaintiff group accuses the Sydney-listed Mexican-themed restaurant chain of failing to satisfy the notification requirement tied to the shutdown of its U.S. outlets. The suit was filed in federal court in Illinois and seeks to represent affected employees.
Guzman y Gomez, which drew considerable market attention with a high-profile public listing in 2024, had announced last week that it would withdraw from the U.S. market. Company officials attributed the decision to disappointing sales in the region.
Responding to inquiries about the litigation, a company spokesperson said: "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."
Outside the court filing, some market-focused commentary has highlighted investor questions about the company following its U.S. exit. For example, one published note asked whether an immediate $2,000 investment in GYG would be prudent and described a data-driven investing tool called ProPicks AI that evaluates GYG alongside thousands of other companies using more than 100 financial metrics. That note noted ProPicks AI has previously identified notable winners such as Super Micro Computer (+185%) and AppLovin (+157%), and promoted the tool as a way to compare GYG with alternatives in the same sector. The company did not expand on those investor-oriented observations.
Clear summary
A class action has been filed in Illinois alleging Guzman y Gomez did not provide a 60-day notice before shutting U.S. operations. The company says it has fulfilled its obligations and is not commenting further.
Key points
- U.S. employees filed a class action in an Illinois federal court alleging a failure to provide a 60-day closure notice.
- Guzman y Gomez, a Sydney-listed Mexican-themed restaurant chain that listed publicly in 2024, announced last week it was exiting the U.S. due to weak sales.
- The company stated it believes it met legal obligations to its U.S. staff but declined further comment.
Risks and uncertainties
- Outcome of the class action is uncertain and could create financial or administrative obligations for the company - this primarily affects the restaurant and legal services sectors.
- The suit alleges non-compliance with notification requirements, introducing legal and reputational risk for the company - relevant to investors and labor markets tied to the dining sector.