A group of U.S. employees have sued Sydney-listed Guzman y Gomez in an Illinois court. The lawsuit alleges the Mexican-themed fast-food chain failed to provide prior notice before closing all its Chicago restaurants.
Guzman y Gomez, known for its global expansion plans and a blockbuster listing in 2024, announced its exit from the U.S. last week due to poor sales.
A company spokesperson said: 'GYG is aware of the legal action and is confident it met all legal obligations. We cannot comment further.'
The lawsuit claims the company permanently closed all six Chicago locations last Thursday and terminated staff without warning. Workers were notified via an internal messaging platform late that evening.
About 500 employees may be affected. The plaintiffs seek 60 days of unpaid wages and benefits under the WARN Act.
