Vestand, Previously Yoshiharu, Pauses Operations

Vestand Inc., previously known as Yoshiharu Global, has temporarily closed 12 of its ramen restaurants as it looks to “mitigate ongoing operating losses and stabilize the company’s financial condition,” the Brea-based operator said in a March 12 regulatory filing. 

The pause began on March 2, affecting five Orange County locations in Garden Grove, Buena Park, Laguna Niguel, Orange, and San Clemente.   

Vestand said it may close additional restaurants in the future and that certain locations could reopen if adequate financing becomes available. Shares have traded at less than $1 apiece since Oct. 29 and the firm has a market cap of $5.5 million.  

“The Company’s restaurants in California at Buena Park, Eastvale, La Mirada, Irvine, and Ontario are currently in lease-related defaults which provide the respective landlords with certain remedies under the respective lease agreements,” according to the filing.  

Additionally, Vestand reported that its chief compliance officer and board member Andrew Yun resigned on Feb. 27 stating that his concerns and advice regarding the company’s actions “were not adopted, heard, or meaningfully considered.”  

Vestand received a delisting notice from Nasdaq in December because it did not file its third quarter earnings report on time. The firm had previously determined in October that previous financial statements were unreliable.