Judge OKs sale of Z’Tejas to new restaurant venture
Iron Cactus partners join with Stone Group in eatery acquisition.
A bankruptcy judge has signed off on a newly formed company’s plans to acquire Z’Tejas Southwestern Grill, the restaurant chain said Monday.
Financial terms of the acquisition were not revealed.
Eight locations in Arizona and Texas will be taken over by Cornbread Ventures, a group that consists of the general partners of the Austin-based Iron Cactus restaurant chain and the Stone Group, an Austin-based commercial real estate investment company.
A Costa Mesa, Calif., location was recently closed — a decision made by previous management, according to Cornbread Ventures.
The chain got its start in Austin in 1989, and there are three Z’Tejas locations here: 10525 W. Parmer Lane in Avery Ranch; 9400-A Arboretum Blvd. in the Arboretum area; and 1110 W. Sixth St. near downtown Austin.
Z’Tejas is currently based in Scottsdale, Ariz. Corporate management will be allowed to continue living and working in Arizona, Cornbread Ventures said.
“We’re grateful for the bankruptcy court’s final approval of the sale and honored to have the opportunity to preserve such an iconic restaurant brand,” Cornbread Ventures partner Mike Pottorff said in a written statement. “There is a lot of work to be done, but we are passionate about the concept and look forward to
rolling out some exciting changes in the near future.”
Z’Tejas filed for Chapter 11 bankruptcy in July, with executives saying in a statement released at the time that the company hoped “to restructure its long-term debt and other financial obligations.” Creditors included city of Austin Utilities, U.S. Foodservice, Brothers Produce of Austin and Farmers Insurance Group.
“We’re excited about the future of the Z’Tejas brand and our vision for the concept,” Cornbread Ventures partner Gary Manley said.
“Our utmost priority is to continue to deliver the same great service and high-quality food and drinks Z’Tejas guests have come to expect over the last 25 years, while enhancing the menu offerings and improving the aesthetics of each restaurant location.”