SAN ANTONIO – Local Italian restaurant chain Guillermo’s filed for Chapter 11 bankruptcy, but ownership says the decision was a strategic one that will allow it to reorganize and avoid shuttering one of its two locations.
The organization’s attorney, William R. Davis Jr. of Langley & Banack Inc., on April 8 submitted a voluntary petition for Chapter 11 bankruptcy with the Western District Court of Texas, court records show.
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Guillermo’s, like the majority of restaurants, was impacted by the COVID-19 pandemic in 2020. The restaurant had expanded with a second location on Austin Street near the Broadway corridor at the time, capitalizing on the market then. Constant waves of growth and recession significantly impacted the two locations over the next three years. Some months had 30% less in business year over year, resulting in a $90,000 difference.
The business also faced other factors, like over $100,000 in fines from the Department of Labor for overtime issues that have since been corrected and property taxes that have increased by over $40,000 per year.
The decision to file for bankruptcy was not an admission of defeat or a decision to walk away. Instead, it was the best option for the organization to move forward and maintain its two locations, and to avoid closing down like other establishments, says the restaurant.
“I didn’t want to shut the Austin Street location; people love it too much.” Guillermo’s President William Garza told the Business Journal. ”I was trying to strategize and look at the numbers and see what’s going to ensure that we’re here for my staff, for myself and my family, and my customers. That was the decision made to ensure that we’re not going anywhere.”
Garza confirmed there are currently no plans for either location to close.
Click here to read the full story in the San Antonio Business Journal.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.