Mexican restaurant chain Abuelo’s and its parent company, Food Concepts International (FCI), based in Lubbock, Texas, have reportedly filed for Chapter 11 bankruptcy. This news reflects a difficult time for restaurants, with restaurant chain Hooters filing for bankruptcy and Noodles & Company announcing closures.
Restaurant Business initially reported on the bankruptcy filing of the Mexican chain, noting that Abuelo’s listed debts and liabilities ranged between $10 million and $50 million. Both the restaurant chain and its parent company requested the court to consolidate their cases.
Abuelo’s was established in 1989 in Amarillo, providing Mexican cuisine in a high-end setting adorned with fountains and greenery. Despite once boasting about 40 locations, the chain downsized due to the post-pandemic economy, ending last year with just 20 restaurants.
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What led the chain to file for bankruptcy?
Legal documents reveal that Abuelo’s and its parent company owe First Bank and Trust $8 million, in addition to debts owed to other investors and food service companies…