Food Concepts International, Abuelo’s International L.P. and affiliates, owner of the Abuelo’s Mexican Food Embassy restaurant chain, have filed for Chapter 11 bankruptcy protection in the Texas Northern Bankruptcy Court.
The Lubbock, Texas-based casual-dining restaurant chain was founded in 1989 and had 40 units at one point. Data agency Technomic, a sibling group to Nation’s Restaurant News, noted that Abuelo’s had 20 units at the end of 2024, down from 23 in 2023.
Abuelo’s, in bankruptcy court filings Sept. 2, listed assets and liabilities in the range of between $10 million and $50 million. The companies cited creditors in the range of 200 to 999.
Abuelo’s, now at 16 units, cited sales declines, rising costs, and staffing challenges. Technomic figures indicated sales were down 15.4% between 2023 and 2024.
Other Mexican-based casual-dining chains have experience financial problems.
OTBLLC, the parent company of Irving, Texas-based Tex-Mex restaurant chain, On the Border Mexican Grill & Cantina, filed for Chapter 11 bankruptcy protection in March. It was later purchased by Houston-based Pappas Restaurants.
Abuelo’s has locations in seven states, including Arizona, Arkansas, Florida, Kansas, Oklahoma, South Carolina, and Texas.
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Dining and Cooking