December 5, 2022
Jimmy Guaco’s Inc., 2359374 Ontario Inc., 8091463 Canada Inc., and 2798497 Ontario Inc. (collectively “Jimmy Guacos”) each operated a restaurant franchise as part of a chain of Mexican inspired grills operating under the brand name of Jimmy Guaco’s. Three of the restaurants closed as they could not meet their cash flow obligations as they were coming due. The Whitby location remains open. The other Jimmy Guaco’s restaurant franchise legal entities each filed NOIs on December 5, 2022. In addition, on December 6, 2022, Jimmy Guaco’s Franchising Inc., which was incorporated in June 2020 for the purpose of selling franchises under the “Jimmy Guaco’s” restaurant brand, was assigned into bankruptcy. The attempt to launch franchises while Covid-19 continued, along with poor advice received from outside franchising consultants, and the inability to finance losses realized by underperforming locations, collectively contributed to the insolvency for the restaurant chain. Dodick Landau is the proposal trustee. Goldman Sloan Nash & Haber is counsel to the proposal trustee.
By Dina Milivojevic