Newport Ventures, a franchise operator of Del Taco in Colorado, has closed 18 locations after filing for Chapter 11 bankruptcy protection. The company, which purchased the outlets for $14.1 million in 2023, encountered financial difficulties and fell behind on payments to Jack in the Box, the parent company of Del Taco. Jack in the Box terminated Newport Ventures’ license to operate the locations roughly a year after the acquisition. Despite the closures, Jack in the Box stated that the shutdowns are temporary and aims to reopen the locations soon. The Del Taco brand has faced challenges, with comparable sales declining by 4.5% in the fiscal first quarter. However, the company remains optimistic about its menu-optimization initiative, which has shown early positive results. Del Taco plans to open 15 to 20 new restaurants this fiscal year and continues to shift towards a franchise-focused model. — news from TheStreet