Austin Street by Guillermo’s is located at 1216 Austin St. Credit: Instagram / guillermosaustinstreet

San Antonio Italian mini-chain Guillermo’s has filed for Chapter 11 bankruptcy reorganization, a “strategic decision” that will allow it to stay in operation, the San Antonio Business Journal reports, citing company ownership.

The move will allow Guillermo’s to pay off debts while avoiding the closure of both its locations, Guillermo’s President William Garza told the publication.

The original Guillermo’s, located at 618 McCullough Ave., has served Italian American fare to downtown San Antonio diners since 1995. In 2021, the company opened a second location at 1216 Austin St.

“I didn’t want to shut the Austin Street location; people love it too much,” 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.”

In addition to the pandemic-related hangover that’s affected other hospitality businesses, Guillermo’s faced $100,000 in Department of Labor fines for overtime issues, which have since been corrected, according to the SABJ report. The business’ property taxes also have increased by over $40,000 annually.

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