AUSTIN (KXAN) – Z’Tejas, the Austin-founded restaurant chain, has filed for Chapter 11 bankruptcy.
In U.S. bankruptcy Court filings, the restaurant’s performance is described as suffering. The company is currently in debt for $9.3 million. $17,448.61 is owed to the City of Austin for utilities.
As a condition of the Chapter 11 filing, Z’Tejas wants to conduct a sale to an entity known as ‘Cornbread Ventures.’ The sale would give the restaurant $725,000. Without it, the company would need to be liquidated.
Z’Tejas reported revenues of $34 million in 2012, $33.9 million in 2013 and $35.6 million in 2014.
Founded there in 1989, three locations of the restaurant remain in Austin after the corporate headquarters moved to Arizona in 2007. The company has nine restaurants in the Southwest.