Don Pablo's files for Chapter 11 bankruptcy
Don Pablo's, the chain of Tex-Mex restaurants, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in San Antonio on Tuesday, according to court documents. But the Norwood store is one of 12 that remain open.
John Mitchell, a lawyer for Rita Restaurant Group, which operates Don Pablo's, said in court documents that efforts to improve financial performance have been "adversely impacted by the overall weakness in the casual dining environment."
"The casual dining industry is highly competitive and faces increased competition from fast-casual dining options," Mitchell said in court documents.
Additionally, Mitchell said Moe's Southwest Grill, Panchero's Mexican Grill, Qdoba and Chipotle Mexican Grill, among others, have added pressure to Mexican casual dining.
Mexican food is available in "new and substantially more locations," Mitchell said.
Chapter 11 bankruptcy generally provides for reorganization" according to uscourts.gov.
Court documents indicate Rita's Restaurant Group holds between $1 million and $10 million in estimated liabilities.
Court documents stated that Don Pablo's at one point had 120 locations throughout the United States after being founded in 1985, making it the second largest full-service Mexican restaurant chain in the U.S. during the 1990s.
One way to cut costs, Mitchell said in the filing, was to close locations. The company's website now shows only 12 stores, including the one in Norwood. The company closed four locations in Indianapolis in the wake of the bankruptcy, Indystar.com reports. The Detroit Free Press said a location in Battle Creek, Michigan was closed without warning; some employees learned about the closing on Facebook.
After 22 years on the riverfront, the Don Pablo's in Newport closed after heavy rain caused water damage, sparking an electrical fire. Tom Fromme, Newport City Manager said in an August Enquirer report that he thought they would make repairs.
"I guess they made a business decision to close permanently," Fromme said at the time.
Check below to view the full court documents.
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