Z'Tejas Inc., a Scottsdale-based group that includes all Z'Tejas restaurants and Taco Guild in Phoenix filed for Chapter 11 bankruptcy last week. In the filing, Z'Tejas President and CEO Steven Micheletti says the chain has about $9.25 million in outstanding debt.
According to the filings, a decline in sales contributed to the company's debts, with an almost three percent decrease in sales in 2013, and an almost 5 percent decline in 2014.
For a cash infusion, the company is looking to an entity called Cornbread Ventures LP. The company has offered to buy all of Z'Tejas' assets for about $1.4 million in credit and $2.3 million in cash, totaling almost $4 million.
The Z'Tejas restaurant group boasts locations in Arizona, California, and Texas, with five Z'Tejas restaurants in the Phoenix metro area alone, plus Taco Guild on Osborn Road.
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The company and its attorneys did not respond to multiple calls and voicemails from New Times.