Ocean Front Hospitality Group, owner of the Rosa Mexicano franchise in Puerto Rico, has filed for Chapter 11 bankruptcy protection, citing more than $3.6 million in debt, this media outlet learned Wednesday.
According to the case filing, the company owes the bulk of the debt, or $3 million, to CPG Real Estate, which owns the Paseo Caribe complex where Rosa Mexicano is one of the anchor tenants.
Puerto Rico’s first and only Rosa Mexicano restaurant opened in March 2014, when the franchisee invested $2.2 million in the 245-seat eatery overlooking the Atlantic, as this media outlet reported.
At the time, the “casual elegant” restaurant was the chain’s 19th location. The franchisee had four partners: Héctor Santiago, Julio Canales, Luis García, and Chef Roberto Treviño. They have a license to open at least two restaurants on the island.
The foursome also had another business venture in the former Casa Lola restaurant, which shuttered in May 2016.
In recent months, this media outlet had learned that the owners of Rosa Mexicano were considering moving out of the Paseo Caribe complex, where they were the first commercial tenant at the time of the opening.
Other major cases filed
The list of petitions filed at the U.S. Bankruptcy Court for the District of Puerto Rico also shows that several motels are also seeking protection from creditors as they reorganize their finances.
Motel The Rose, owned by Inversiones Araxi Group Corp., filed for Chapter 11 bankruptcy, listing more than $3.5 million in debt.
Meanwhile, Hotel Lisboa, owned by PR 1 Investment Rooms Corp., also filed for the same type of protection, citing $4.1 million. PR 1 Investment Rooms Corp. is listed as one of the creditors in the Motel The Rose case, as well as in a separate Chapter 11 filing, by Buena Vista Plantation, which has another $5.1 million in debt.