Chipotle forced to speak out after swirling bankruptcy and restaurant closure rumors spark panic online
CHIPOTLE has spoken out after rumors claiming the iconic restaurant chain was about to enter bankruptcy and close outlets swirled online.
The rampant speculation sparked panic on social media, leaving shoppers demanding answers.
Speculation emerged after a Union Rayo article surfaced which claimed Chipotle had abandoned a spinoff company, known as the Farmesa Fresh Eatery.
As rumors about the chain’s demise spread, exec Erin Wolford dismissed the claims.
She claimed the media outlet had confused Chipotle with the spinoff, per USA Today.
But, despite Wolford’s statement, rumors still continue to swirl.
read more on money
“Chipotle going bankrupt is crazy. Like wtf,” one said.
“Idk how Chipotle going bankrupt,” another chimed.
“I drop a bag every 2 months fytb.”
“How is chipotle going bankrupt when I’m there everyday???” another stunned diner said.
Most read in Money
Scores of diners have messaged the chain’s X account wanting answers.
A Chipotle spokesperson revealed the company has no plans to close locations, according to The CW affiliate WPIX-TV.
More than 300 establishments are to open across the US this year.
The company is opening a store in Sacramento’s Arden-Arcade in the coming months, as reported by The Sacramento Bee.
It will be the chain’s 15th location in the city.
And plans are reportedly underway for a new Chipotle establishment in West Lake Hills, Texas, per Community Impact.
But Chipotle did abandon its Farmera Fresh Eatery in 2024.
Brian Niccol, the CEO at the time, revealed the chain was prioritizing its own brand.
The first Farmera location opened in Santa Monica in 2023.
US braces for '45,000 store closures'
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
While Chipotle is opening establishments, major chains are closing locations.
Denny’s chiefs have confirmed that plans are in place to shut 150 underperforming outlets by the end of the year.
Read More on The US Sun
Between 70 and 90 locations are to close.
This is on top of the 88 establishments that have slammed shut.