Burnt BBQ & Tacos filed for Chapter 11 bankruptcy on July 23, citing financial pressures tied to rising costs and debt. The restaurant has struggled to stay afloat in today’s challenging economic conditions. The small business is seeking court protection to continue operating while it works on a financial restructuring plan.
Highlights
- Burnt LLC filed for Chapter 11 bankruptcy at the Texas Northern Bankruptcy Court on July 23, 2025.
- The company filed under Subchapter V, a provision designed for small businesses seeking streamlined reorganization.
- The court proceedings continue while the restaurant operates.
Burnt LLC Filed for Chapter 11 Subchapter V Bankruptcy
Operating under the name Burnt BBQ & Tacos since 2020, Burnt LLC filed for bankruptcy following sustained financial challenges. According to the bankruptcy report by PacerMonitor, on July 23, the company filed for Chapter 11 bankruptcy protection to reorganize its finances.
The restaurant, located at 2929 Custer Road in Plano, has served the community since 2020. Despite having fewer than 50 creditors, the business has struggled to manage operational and financial obligations.
The filing shows that the restaurant has assets of less than $50,000 and liabilities between $100,001 – $500,000. Limited assets and mounting liabilities ultimately led the company to seek bankruptcy protection.
As Burnt LLC is a small business, it filed for Chapter 11 Subchapter V bankruptcy. Subchapter V offers a streamlined and cost-effective path for small businesses to propose a court-approved reorganization plan. Burnt LLC is expected to submit a reorganization plan that addresses both operational goals and creditor obligations.
Operations Continue Amidst Court Proceedings
Despite the filing, Burnt BBQ & Tacos remains open as the company moves through the restructuring process. The restaurant remains open for service as the company works on a reorganization plan under court supervision. While the financial outlook remains uncertain, the filing allows Burnt LLC time to explore recovery options.
Chapter 11 protection gives Burnt LLC the opportunity to continue operations while working toward long-term financial stability. The company plans to outline a long-term restructuring strategy focused on restoring stability and resolving outstanding obligations.
