Former workers at an Australian-based restaurant chain have taken legal action in Illinois, claiming the company violated federal employment laws when it abruptly shuttered all its Chicago-area locations last week.
The lawsuit targets Guzman y Gomez, a Mexican-themed fast-food company traded on the Sydney stock exchange that made headlines with a major public offering in 2024. The chain announced its complete withdrawal from the United States market last week, citing disappointing sales performance.
According to court documents filed Monday, the company permanently shuttered all six of its Chicagoland restaurants last Thursday, immediately ending employment for all workers without advance warning. Staff members only learned of the closures through an internal messaging system later that evening.
“GYG is aware of legal action filed in the United States, and we are confident we have met all of our legal obligations to our U.S. employees. We are not in a position to provide further comment on this matter,” a spokesperson told Reuters.
The legal complaint estimates that roughly 500 workers were impacted by the sudden restaurant closures, according to court filings.
Former employees are demanding 60 days worth of unpaid wages and benefits under both federal and state Worker Adjustment and Retraining Notification Acts, along with maximum civil penalties permitted under the legislation.
Despite the legal challenges, Guzman shares surged more than 10% when trading opened Monday, though gains were later erased. The stock was trading flat at A$19.805 at 0543 GMT, but remained 24% higher since the company announced its U.S. market exit on Friday.
