Overview

• Abuelo’s and parent Food Concepts International filed for Chapter 11 in early September in the U.S. Bankruptcy Court for the Northern District of Texas, with a request to combine the cases.
• Court papers list assets and liabilities between $10 million and $50 million.
• Following the filings, the company shuttered 24 locations, leaving 16 restaurants open across states including Texas, Oklahoma, Florida and Arizona.
• Executives attributed the restructuring to declining sales, rising food and labor costs, staffing challenges and shifting consumer behavior, with reports citing a 5.9% traffic drop in 2023 and about a 15% sales decline into 2024.
• The company says remaining locations, including its flagship in Lubbock, will continue normal operations as it works to stabilize finances, noting weather disruptions in 2024 also hurt revenue.