Three more locations of Lubbock-based Abuelo’s restaurants closed since the company filed for bankruptcy in early September.
On November 13, Abuelo’s informed the bankruptcy court in Fort Worth it closed a location in Tulsa. Abuelo’s in The Colony, Texas and Wichita, Kansas closed recently.
LubbockLights.com reached out to a spokesperson for Abuelo’s Monday. We have not heard back yet.
Official records claimed Abuelo’s operated 16 restaurants in seven states when the bankruptcy first started. Now the restaurant chain’s website lists 13 locations in six states.
The company already has permission to auction off the property from The Colony and Wichita. Abuelo’s is seeking court approval to do the same in Tulsa.
The Tulsa assets have “a fair market value between $10,000 and $50,000” based on the results of other recent sales at recently closed locations, court records said.
A local bank and a food supplier have liens on the Tulsa property. Abuelo’s asked permission to abandon its lease in Tulsa. An order from the judge is still pending.
At its peak, it had close to 40 restaurants in 13 states. The Lubbock location remains open as do seven others in Texas. The company has locations in Arizona, Arkansas, Florida, Kansas and South Carolina.
“[Abuelo’s] operations have been impacted by a significant drop in sales, rising food and labor costs, continued staffing challenges and changes in consumer preferences,” an updated bankruptcy document claimed.
Abuelo’s obtained emergency financing from two of its investors and hopes to restructure.
Click here to see our October 13 story including highlights of the emergency financing and temporary budget.
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