Abuelo’s turned a $1.4 million profit in November, according to the most recent monthly financial report in bankruptcy court, and late last month a judge granted the company more time to work on its Chapter 11 bankruptcy plan.
The Lubbock-based national restaurant chain filed for reorganizational bankruptcy on September 2 amid rising costs and “consumer weakness,” which LubbockLights.com covered here.
At one time, Abuelo’s had nearly 40 locations in 13 states. Immediately prior to filing, the Mexican casual dining chain had 16 restaurants in seven states, according to court records.
Currently, it’s 13 locations with three locations shutting down during the bankruptcy. The most recent records do not indicate which locations are profitable and which, if any, are losing money.
Abuelo’s asked for and later received more time to file a Chapter 11 reorganization plan in early December.
The restaurant chain had to show more time was needed to negotiate, “good faith progress” or hope for filing a viable plan.
Abuelo’s claimed there are more than 500 unsecured creditors – making the case for more time. They’re not spelled out in the request but they typically can be food suppliers, landlords with past due rent from before the bankruptcy, or other professional service providers.
Some of the work includes negotiating new leases with landlords. Abuelo’s made the case it’s now on the right track by making enough money to pay its ongoing expenses during bankruptcy.
Why ask for a delay?
“… It is possible the negotiation process with not only landlords, but also other creditor constituencies, will extend beyond December 31, 2025, which is the 120th day of the instant chapter 11 bankruptcy proceedings. In an abundance of caution, the Debtors file this Motion to extend exclusivity thereby preserving their right to file and solicit confirmation of a chapter 11 plan free of competing chapter 11 plans.”
Source: Abuelo’s request in bankruptcy records.
Judge Edward Morris granted the request for more time on December 30, the day before the reorganization plan was due – allowing the company until March 1. Between now and then, Abuelo’s is the only one with the right to file a plan. Creditors can negotiate or raise objections but are not allowed to file alternative plans before then.
Abuelo’s then has until April 30 to persuade creditors to vote in favor of its plan.
Abuelo’s Monthly Operating Report: November 2025
Revenue
Costs
Cost of food and beverages: $745,169
General and administrative expenses: $2,388,194
Taxes: $343,453
Net operating profit
There has not been an update yet on the total assets and debts since the case first started. At that time, Abuelo’s and its related companies – Food Concepts International and FCI Holding – had a combined $31.25 million of total assets and $30.65 million of total liabilities.
Two company shareholders, Randall Andrews and David Sharbutt, loaned Abuelo’s $1 million during the bankruptcy process.
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