Sausalitos eyes comeback after filing for bankruptcy
The German restaurant chain Sausalitos has filed for bankruptcy after more than 30 years of operation. The company cites a decline in profitability and changes in customer behavior as the reasons for its insolvency. Despite its insolvency, the company seeks a new investor to return "at the right time."
The restaurant chain is considered a leader in the Mexican-American gastro-bar concept in Germany and is known for its cocktail bars and Tex-Mex cuisine.
The German restaurant chain Sausalitos is going under
According to the German news agency dpa, the bankruptcy filing by the restaurant and bar chain affects about 40 company branches.
The District Court in Munich has appointed attorney Michael Schuster as the insolvency administrator. Schuster emphasized that the goal is to continue operations and find a new investor for Sausalitos.
With this plan, the restaurant branches will remain open for now, reports the German portal news38.de. The wages of about 1,000 employees are secured until the end of May 2025 through insolvency benefits.
Despite the difficult situation, the management of Sausalitos is hopeful of finding an investor to help further develop the chain. In the meantime, restaurant operations are set to continue.
The administrator indicated that the reasons for the financial problems of the chain are "the ongoing effects of changing consumer behavior since the COVID-19 pandemic and the resulting decline in customer numbers across the gastronomic industry."
Additionally, the company's revenues and profitability have declined due to the economic situation in Germany.
The Sausalitos chain was founded in 1994 by Thomas Hirschberger in Ingolstadt. In 2014, Hirschberger sold the chain to investors. Currently, Sausalitos has over 40 locations throughout Germany. Franchisees are not directly affected by the insolvency.
Textile manufacturer ends operations after 193 years
Not only is the German gastronomy sector struggling, but companies in other industries are also facing challenges. In January 2025, due to the inability to find a new investor, a textile manufacturer from Hesse will have to cease operations after nearly 193 years.
The company has been struggling for a long time. The transfer of critical production areas to Belarus turned out to be a mistake after the country was sanctioned for supporting Russia in the war in Ukraine. The attempt to relocate production to Uzbekistan also failed.
Burkhard Oel, the company owner, noted that demand for premium linen tablecloths has significantly declined among key clients in the hospitality and tourism sector, leading to a 30% decrease in sales.
