One of San Antonio’s largest honky-tonks has filed for bankruptcy due to an ongoing dispute over construction projects, according to court filings.
But the dance hall won’t be closing.
The Chapter 11 protection, also known as reorganization bankruptcy, will allow it to stay open and keep running as it reorganizes its debts and fixes its finances.
In a social media statement, Cowboys confirmed it will stay open during its normal four-night schedule and does not plan to cancel concerts or special events.
“Hey y’all, we want to address recent news directly,” the venue wrote. “This is a business move specifically designed to address ongoing landlord disputes and local highway construction concerns, protecting our staff, our operations, and our venue’s future.”
In the filings, the company said it has been unable to pay rent due to the Texas Department of Transportation’s Interstate 10 East / Loop 410 Interchange Project, an ongoing highway overhaul that involves building stacked flyovers next to and over the dance hall. The dance hall says the project, which is now in its fourth year, is hurting the venue’s visibility.
Cowboys Dancehall opened at 3030 NE Loop 410 in 2003. It is among San Antonio’s largest honky-tonks, housing two dance floors and a large, professionally lit stage.
The company has $1.52 million in assets and $6.89 million in liabilities as of May 31, according to court filings. The largest debt, for $340,000, belongs to Red River Beverage Inc., a manufacturing and distribution company.
This isn’t the first of the venue’s financial troubles. Its operators have sought bankruptcy protection before.
In 2019, the dance hall was sold after Cowboys Far West sought Chapter 11 protection. The Austin-based developer Heiser Development Corp. bought the property for $6.5 million. Cowboys Far West leased back the property and continued to operate the dance hall,