A popular Mexican restaurants chain that once made a promising future with 40 stores in the United States, has declared bankruptcy and reduced to only 16 locations.
Abuelo’s, a 36 -year -old restaurant chain, owned by Food Concepts International, declared bankruptcy at the beginning of this month in the United States bankruptcy court for the northern district of Texas.
The chain listed the assets and liabilities between $ 10 million and $ 50 million, as shown in the judicial presentations.
Similarly, the matrix grandfather company Food Concepts International declared bankruptcy in early September and has asked for cases to be combined.
“This decision is part of a strategic reconstruction process to strengthen our long -term financial position,” Granduelo said in a statement obtained by Restaurant Business.
“We will continue normal operations and continue to maintain stability for our employees, suppliers and customers. During this time, our loyal clients can join us and wait for the same quality and hospitality that we have always provided.”
According to FSR magazine, the chain has had problems for several years.
The company attributed the presentation to a fall in sales, the increase in food and labor costs, and a change in consumer interests.
FSR reports that these challenges began to emerge in 2023, with traffic falling 5.9% that year and persisted in 2024. The media reports that Grandfather combined the fall in sales by closing low performance stores and reducing general costs.
Abuelo’s operates stores in Arizona, Arkansas, Florida, Kansas, Oklahoma, South Carolina and Texas.
Read the original article about Masslive. Add Masslive as a preferred source by clicking here.
(Tagstotranslate) Food Concepts International (T) Mexican Restaurants Chain (T)
Source link