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UPDATED: Jack in the Box reopens

Date AddedOctober 25, 2009 08:04:06 AM

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CategoryFast Food Franchises

 

Five Jack in the Box locations in Shasta and Tehama counties -- including three in Redding -- reopened this afternoon.

The restaurants had been closed since Thursday as the franchise operator attempted to negotiate more than $1.5 million in unpaid state taxes.

The locations opened around 2:15 p.m.

Earlier today, Brian Luscomb, spokesman for the fast-food chain, said franchisee Abe Alizadeh had temporarily closed his 70 Jack in the Box restaurants in Central and Northern California while he worked to resolve his tax issues.

A note to customers earlier today at the Dana Drive restaurant in Redding said, "Unfortunately the store is closed as a result of a complex financial matter that is the subject of ongoing negotiations with the state of California."

Doing business as Kobra Associates Inc., Alizadeh's Roseville-based food service firm is one of the largest sales and use tax debtors in California, according to the State Board of Equalization.

Kobra Associates Inc. owes $1,504,913.31 in unpaid sales and use taxes, the Board of Equalization reported on Sept. 9.

Phone messages left today at Alizadeh's Roseville office weren't immediately returned.

Anita Gore, a spokeswoman with the Board of Equalization, wouldn't say whether Alizadeh decided to close his fast-food restaurants or the state forced him to temporarily shut down.

The state put a tax lien on Alizadeh's properties last September. Alizadeh's food service company has been listed among the top 250 tax debtors since the fourth quarter of 2008, Gore said.

California by law is required to make public quarterly lists of the top 250 tax debtors but any additional information is confidential, Gore said.

"We will work with taxpayers to come up with ways they can make repayments," Gore said by phone today from her Sacramento office.

The closures were not related to any health or safety issues nor due to Alizadeh's Jack in the Box operations, Luscomb said.

Alizadeh operates Jack in the Box restaurants in Redding at Cypress Avenue, Dana Drive and Railroad Avenue. He also has a location in Anderson and in Red Bluff.

A typical Jack in the Box restaurant will employ between 20 and 30 people, Luscomb said, so the closures in Shasta and Tehama counties potentially affect at least 100 workers.

Alizadeh is one of the largest franchise operators within the regional chain, which has 2,200 restaurants in 18 states.

 

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