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Abuelo’s Mexican Restaurant Files for Bankruptcy Amid Struggles

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Abuelo's Mexican Restaurant Bankruptcy Filing Texas

Dallas, Texas — Abuelo’s Mexican Restaurant, a beloved eatery chain for 36 years, has filed for bankruptcy in the Northern District of Texas. The chain, which once boasted 40 locations across the country, is now down to 16 due to a variety of challenges.

The company cites declining sales, escalating costs, staffing difficulties, and shifting consumer preferences as key reasons for its financial troubles. In its bankruptcy filing, Abuelo’s disclosed debts and liabilities ranging from $10 million to $50 million. This filing comes shortly after its parent company, Food Concepts International, also declared bankruptcy in early September.

“This decision is a part of a strategic restructuring process to strengthen our long-term financial position,” said Abuelo’s in a recent statement. The company assured customers, employees, and vendors that it would continue normal operations and maintain its commitment to hospitality.

Abuelo’s has had declining customer traffic, with a reported drop of 5.9% in 2023, a trend that has continued into 2024. In response, the chain has closed underperforming locations and cut overhead costs. Currently, Abuelo’s restaurants are located in Arizona, Arkansas, Florida, Kansas, Oklahoma, South Carolina, and Texas.

As the restaurant navigates these challenges, it strives to retain its loyal customer base while managing its financial restructuring.