KNOXVILLE, Tenn. — Babalu Tacos and Tapas in downtown Knoxville is permanently closing as the COVID-19 pandemic continues.

 The company that owns Babalu, the Spell Restaurant Group, said both the Knoxville location and the Alabama location were losing money. 

"During this very difficult time our world is experiencing, the negative cash flow from both of these two locations was unsustainable," SRG owners wrote in a Facebook post Sunday night. 

The group said this decision follows a wave of layoffs last week in all of its locations. It added that it doesn't expect to close its other three locations. 

"To put it simply, SRG, like nearly all restaurant groups across the country, is in survival mode," the group wrote.

We are saddened to announce the closure of our Birmingham, Alabama, and Knoxville, Tennessee locations. For full details, please see below.

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