Taco Bell declared bankrupt in the Netherlands

The Dutch arm of Taco Bell has been declared bankrupt, marking the fast food chain's second collapse in the Netherlands in less than a decade, RTL reports. Ten restaurants across the country, including in Amsterdam, Rotterdam, and The Hague, have been forced to close. However, the company said it remains committed to keeping the restaurants open.

On Wednesday, the Rotterdam district court officially declared T Bello Nederland bankrupt. The company operated all Dutch Taco Bell locations under a franchise agreement with a British operator. Dutch bankruptcy trustee Maarten Jansen has been appointed to oversee the proceedings, though he was not immediately available to give RTL a comment.

The collapse comes after a period of financial turmoil for the British franchisee, which also runs Taco Bell locations in the United Kingdom and Malaysia. Problems surfaced last fall, raising questions about the future of the Dutch restaurants. Despite attempts to sell off the Dutch locations, those efforts failed, and the British operator filed for a payment moratorium.

T Bello Nederland had raised 2 million euros from investors in 2023 via a bond offering on the Dutch NPEX mini-exchange. That money was intended to fund further expansion in the Netherlands. But as financial troubles deepened and the sale of Dutch operations collapsed, investors grew increasingly concerned. With the bankruptcy now confirmed, RTL reports that it appears increasingly likely that bondholders will lose their investment.

Taco Bell's presence in the Netherlands has been allegedly troubled from the start. The company first announced plans in 2016 to open 50 locations within ten years. But just two years later, the original franchisee went bankrupt, halting expansion. The brand made a second attempt shortly after, this time through the now-insolvent British franchise partner. Between 2017 and 2023, the group managed to open ten restaurants.

"Taco Bell remains fully committed to a long-term presence and continued success in the Netherlands. Our restaurants will remain open. We are actively working with partners on a transition plan so we can continue providing our customers in the Netherlands with the flavorful food and positive experiences Taco Bell is known for," the company said in a statement to NL Times.

Taco Bell is part of the publicly traded American restaurant group Yum Brands, which also owns KFC and Pizza Hut. Yum Brands typically operates through franchise models.