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Owner of Don Pablo’s Restaurants Files for Bankruptcy

Submitted by jhartgen@abi.org on

The owner of Tex-Mex restaurant chain Don Pablo’s Mexican Kitchen filed for bankruptcy protection yesterday, blaming the downturn in the casual-dining business and increased competition from “fast-casual” Mexican brands, the Wall Street Journal reported today. Rita’s Restaurant Corp., which operates 16 Don Pablo’s and one Hops Grill and Brewery in 10 states, filed for chapter 11 protection in U.S. Bankruptcy Court in San Antonio. Like other casual eateries, Don Pablo’s has suffered in recent years as cash-strapped diners cut back on eating out, the chain’s bankruptcy lawyer John Mitchell said in court papers. The privately held Don Pablo’s is managed by FMP SA Management Group, an affiliate of Food Management Partners Inc., based in Hollywood Park, Texas. FMP also manages two other Texas-based restaurant chains now in bankruptcy: Buffets Restaurants, which filed for bankruptcy in March, and Zio’s Italian Kitchen, which sought chapter 11 protection last month.