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Abuelo's Restaurant Files Chapter 11 Amid Financial Struggles

10/12/2025

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Story summary
  • Abuelo’s Mexican Restaurant filed for Chapter 11 bankruptcy due to financial struggles, including a 15% sales decline and rising costs.
  • The Texas-based chain formerly operated 40 locations and now has 16 open across seven states, including Texas and Florida.
  • The filing lists debts between $10 million and $50 million.
  • Abuelo’s will maintain operations during restructuring to protect employees and customers, as shifts in consumer demand and weather caused closures.