Mother’s Cantina, LLC has filed for bankruptcy proceedings. The company has been serving as a Tex-Mex restaurant and bar for nearly 18 years. Court records show that it currently faces a gap between its assets and liabilities.
Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. Mother’s Cantina has filed for Chapter 11 subchapter V, which provides a streamlined Chapter 11 process for qualifying small business debtors. A Chapter 11 filing does not necessarily mean that a business is closing. For additional information, readers are encouraged to contact the business directly.
Mother’s Cantina, LLC Files for Chapter 11 Bankruptcy
PACER records show that the company submitted its petition on September 1, 2026. The records identify it as a small business debtor, adding that Mother’s Cantina, LLC is proceeding using a Chapter 11, Subchapter V filing.
The filing follows a decline in the revenue of the Tex-Mex restaurant. According to Coast TV, the restaurant’s revenue dipped 20% in 2025 compared to the previous year. Owner Ryan James cited broader economic pressures and said reduced disposable income had changed how diners spend their money.
Case Related Details
Court records show that Mother’s Cantina, LLC submitted a summary of assets and liabilities with the court. According to it, while the company’s assets are estimated at around $193,555, its liabilities are approximately $1.2 million.
The company also submitted a list of creditors with the largest unsecured claims. The U.S. Small Business Administration is one of its unsecured creditors.
Katherine James, who is listed as the sole member, signed the petition prior to filing.
Attorney Constance M. Hare of Coon & Cole, LLC is representing the company in the court.
A summary of the Chapter 11 petition is shared here:
- Filing Date: September 1, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Maryland
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-19654
- Estimated Assets: Between $100,001 and $500,000
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: 1-49
About the Company
Mother’s Cantina, LLC has operated as a family-run restaurant since its establishment in 2008 by Neely and Ryan James. The restaurant serves scratch-made Tex-Mex dishes, including tacos and fajitas, along with seafood tacos inspired by the coastal location. Other offerings include fresh-juice margaritas made with real citrus juice.
The restaurant operates as a casual dining destination for locals and visitors, offering options for happy hour, family dining, and late-night meals. It also provides delivery and pickup services, online ordering, and catering.
The restaurant was named the winner in the Mexican category in OceanCity.com’s 2024 Best of Ocean City awards.
Other Recent Restaurant Bankruptcy Filings
Besides Mother’s Cantina, several other Mexican cuisine food establishments have voluntarily filed for bankruptcy in recent months.
Tacos y Tequila Hanover, Inc. filed for Chapter 11 on August 5, 2026. Case records showed a gap between the assets and liabilities of the New Hampshire location. The Mexican restaurant has been offering its dishes to the Dartmouth College community for years.
A Mexican dining chain’s Scottsdale location moved toward bankruptcy on June 15, 2026. Filing records showed that Four Fingers LLC, doing business as Salt and Lime Modern Mexican Grill, has decided to proceed using Subchapter V. The chain offers its services in Phoenix and Cave Creek as well.
A Tex-Mex establishment in downtown Orlando filed for Chapter 11 on February 26, 2026. The petition showed that The Tavern Bar & Tacos, LLC faced a financial gap. The company has been offering its breakfast and brunch offering for around five years.
The restaurant plans to continue operations while working through the Chapter 11 process.
