KNOXVILLE, Tenn. (WVLT) — Gay Street restaurant Babalu Tacos and Tapas announced it will permanently close after the COVID-19 crisis caused the company to implement mass layoffs across its four locations.
Bablu in Birmingham has also closed its doors for good.
Owner Spell Restaurant Group released a statement about the closures saying, "During this very difficult time our world is experiencing, the negative cash flow from both these two locations was not sustainable."
Locations in Memphis and Jackson, Mississippi are expected to remain open.
"All of SRG's workers have been exceptional and having to let them go saddens us deeply," the company said.
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