Z’Tejas restaurant chain files for Chapter 11 bankruptcy

Z’Tejas Southwestern Grill has filed for bankruptcy protection, according to federal court documents.

Founded in Austin in 1989, Z’Tejas has three Austin locations, although its corporate headquarters are now in Scottsdale, Ariz. Z’Tejas has a total of nine restaurants, including five locations in Arizona and one in Costa Mesa, Calif., according to the company’s website.

All three Z’Tejas restaurants in Austin were open and operating as usual Friday. The restaurants are at 10525 W. Parmer Lane in Avery Ranch, 9400-A Arboretum Blvd. in the Arboretum area and 1110 W. Sixth St. near downtown Austin.

Members of the Z’Tejas corporate management team weren’t immediately available for comment.

After reviewing the “historical performance of the company,” as well as “current and long-term liabilities,” “it is desirable and in the best interests of the company, its creditors, employees, stockholder, and other interested parties that” the bankruptcy petition be filed, according to court documents.

Typically, Chapter 11 filings mean a company plans to reorganize its debt and stay in business, as opposed to other types of bankruptcy.

Court documents indicate there are individual bankruptcy filings linked to each Z’Tejas location. A filing for the West Sixth Street restaurant lists between 200 and 999 creditors, estimated assets of under $50,000 and estimated liabilities under $50,000.

Creditors include City of Austin Utilities, U.S. Foodservice, Brothers Produce of Austin and Farmers Insurance Group.

Almost $20,000 in rent for the West Sixth Street property is reportedly due, as well as rent for some other locations.

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