Beloved Mexican chain vows to keep doors open despite bankruptcy

Abuelo’s reassures customers it is not closing despite financial restructuring

Modified on:
September 23, 2025 4:22 pm

For many people, a family dinner at Abuelo’s Mexican Restaurant has been a tradition for decades. That is why the news of the Texas-based chain filing for bankruptcy earlier this month raised eyebrows and even some fears about the future of their favorite spot. But the company wants you to know one thing: the doors are not closing.

Why did Abuelo’s file for bankruptcy

Abuelo’s International, the parent company of the chain, filed for Chapter 11 bankruptcy on September 2. If you are not familiar with that term, Chapter 11 does not mean the restaurant is shutting down. Instead, it is a type of financial reorganization that allows businesses to deal with debt while still keeping the lights on.

The company explained its decision clearly in a statement:
“To keep our future strong for many years to come, we have taken the step of filing for Chapter 11 protection. This is simply a financial reorganization, nothing about the way we serve you will change.”

In simple terms, this move gives Abuelo’s the chance to get its finances in order while continuing to serve customers.

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Will Abuelo’s locations stay open

Yes, the restaurants are staying open. As of September 22, Abuelo’s listed 16 locations across seven states. Those include:

  • Arkansas – Rogers
  • Arizona – Peoria
  • Florida – Lakeland
  • Kansas – Wichita (two locations)
  • Oklahoma – Tulsa
  • South Carolina – Myrtle Beach
  • Texas – Abilene, Amarillo, Arlington, Fort Worth, Hurst, Lubbock, Midland, The Colony, Tyler

The company has made it clear that service will not change. In their own words:
“We will continue normal operations and remain committed to maintaining stability for our employees, vendors and customers. Most importantly, nothing changes for the guests who make us who we are.”

So, if Abuelo’s is one of your go-to dinner spots, you can still walk in and expect the same menu, same atmosphere, and same service.

What does this mean for employees and customers

When a restaurant chain files for bankruptcy, many people worry about jobs being lost or service quality going down. Abuelo’s wants to reassure everyone that this is not the case here.

  • Employees will continue working as usual.
  • Vendors will still be paid as part of the reorganization process.
  • Customers can still expect the same food and service.

The company is even looking ahead, saying it is excited to keep growing with the communities it serves.

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Abuelo’s connection to lubbock

Abuelo’s began in Amarillo back in 1989, but its ties to West Texas run deep. The company gave special attention to its Lubbock location in a recent statement, saying:
“Lubbock remains part of our story and we will always be open here, furthering our dedication to serving the local community and our customers.”

That emphasis shows that Abuelo’s sees itself as more than just a business. It is part of the community, and it wants to stay that way.

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Enobong Demas
Enobong Demashttps://polifinus.com/author/e-demas/
I write on social welfare programs and initiatives for the United States, focusing on how these programs impact the lives of everyday Americans. My background in environmental sciences allows me to approach these topics with a unique analytical lens to provide my readers with a clear and well-rounded insight, eliminating the complexities often common with these topics.

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