Popular BBQ Brands Files Chapter 7 Bankruptcy, Faces Liquidation

As an avid fan of the show “Bar Rescue,” I’ve seen countless businesses that look healthy on the outside, but actually have a rotten core.

Sometimes this employee pours more alcohol, which can lead to hundreds of thousands in losses over the course of a year. In other cases, the business brings in customers, but lacks the right product mix to monetize them.

And sometimes bar and restaurant owners price their menus incorrectly. They may sell more, but if costs are too high, low profit margins will slowly drive the company out of business.

Smoke BBQ + Skybar, the one-time chain at its last location, appears set for closure.

“The fate of popular San Antonio party bar Smoke BBQ + Skybar at 1100 E. Houston St. is now in question after the location filed for Chapter 7 bankruptcy. The filing comes as owner Adrian Martinez faces multiple lawsuits in Bexar County District Court,” CultureMap San Antonio reported.

• 2015, the original concept launched: Smoke: Restaurant Opens in San Antonio under the owner Adrian MartinezAccording to Culture Map San Antonio, laying the groundwork for the many BBQ/entertainment ventures that followed.

• Extension Years (2015 to 2022): Martinez’s attempt at rapid expansion the smoke Concepts with multiple San Antonio areas (East Side, River Walk, Stone Oak) and even locations and spin-offs Corpus Christi. All these places eventually offCulture map San Antonio added.

• 2022, Houston Street event extension: At Smoke BBQ + Skybar 1100 E. Houston St. (downtown venue known for rooftop vibes, BBQ, and nightlife) expands its calendar significantly High-profile rooftop events featuring artists like 2 Chainz and 50 Cent During this year.

• July 22, 2024: Rooftop shooting incident: a Deadly stray bullets (local coach included) is on the roof, encouraging smoke Close the outdoor concert stage and make security renovations In courtyards and event spaces according to San Antonio Current.

• Before September 2024: In the months leading up to September, business reports Stop paying rent for the Houston Street space after the lease agreement expired, starting a legal battle with the property owner, MySanAntonio reported.

• September 15, 2024, Partial Closing and Lease Exit: Smoke clears Houston Street property Lockout and Eviction NoticesThe same day Martinez publicly announced security-related changes after the shooting incident, MySanAntonio added.

• 2025, the business fails to generate revenue: Court records show $0 in 2025 revenue for Smoke BBQ + Skybar, indicating lingering financial problems before bankruptcy, according to MySanAntonio.

• On November 20, 2025, Chapter 7 bankruptcy was filed:Smoke BBQ + Skybar 78202 LLC Files a Voluntary Chapter 7 Bankruptcy Petition In the U.S. Bankruptcy Court for the Western District of Texas (Case No. 5:25‑bk‑52819), indicating intent Dispose of assets and reduce operationsAccording to a filing shared with PacerMonitor.

• December 30, 2025, 341 Meeting Schedule: Chapter 7 Case Schedule a Creditors 341 meeting of creditors, a standard step in the liquidation process, with a set time limit for claims February 24, 2026Inforuptcy report.

Many restaurant owners drive themselves into bankruptcy when they expand too quickly.

“It’s an ironic term, but for many businesses, too fast growth can be a direct march to financial failure. Rapid expansion is certainly a part of any firm’s success, but when run wild, even the best and brightest ideas can result in financially risky debt,” according to First Choice Debt Solutions.

That could be the beginning of the end.

“Companies that grow too fast fall into a growth trap — an all-too-common condition in which rapid expansion overwhelms finance, operations and sustainability,” the website continued.

It can also be difficult for brands to recover from a situation like the shooting at Smoke BBQ + Skybar.

“In business, a company’s reputation is like a delicate piece of art—precious but fragile. Reputation crises can hit when least expected, threatening years of dedication and building trust,” shared Reputation Science.

How a company handles a reputational crisis can affect whether its business rebounds.

“A crisis can seriously affect a company’s reputation, rapidly reducing public perception and stakeholder trust. The effectiveness of a company’s immediate response plays a critical role in determining the extent of damage. In today’s fast-paced media environment, the speed and tone of a company’s response is critical,” it added.

Sometimes, however, that damage is difficult to repair.

In West Palm Beach, where I live part of the week, for example, when a popular nightlife spot had a series of violent incidents, it never recovered. Even later, similar businesses failed due to negative sentiment.

“Legal liabilities can have a profound impact on an organization during a crisis. They can cause financial losses, disrupt operations, and damage an organization’s reputation. In some cases, legal liabilities can threaten an organization’s existence. For example, regulatory fines, class action lawsuits, and breach of contract claims can cause significant financial losses.”

• In the bankruptcy table, Smoke BBQ Listed About $2.7 million in liabilities but Property valued at $50,000 or lessAccording to PacerMonitor, indicating a large gap that transactions will likely not be paid in full.

• Loans include substantial claims viz About $883,000 is owed to a private creditor (Jacob Solis)., $300,000+ in unpaid rent and damagesInvestor Claims About $600,000and Unqualified taxes. According to Pacer Monitor, several lawsuits were filed in local courts prior to bankruptcy.

• Court records show the transaction $0 in revenue for the entire year of 2025Signs of serious financial crisis to file,” MySanAntonio reports.

“MySA independently obtained documents that confirm Martinez owes nearly $2.7 million in debts he says he cannot repay. In fact, he claims to have no assets and his chain of businesses have net assets of $50,000 or less,” the website shared.

Another civil suit by a cash-strapped investor for the Houston Street property, LBJR Investments, is seeking more than $600,000 for the building from Martinez and his companies. The lawsuit claims he also fell behind on his loans. Martinez’s bankruptcy filing shows he owes another $883,000 to Jacob Solis.

“Martinez and his business were sued by Bexar County, the City of San Antonio and the Northeast Independent School District over unpaid taxes on a Smoke BBQ location located on the Far Northeast Side. Court documents show Martinez owed more than $12,000 in taxes for that location since 2023,” officials said after MSA failed to appear in court.

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This story was originally published by TheStreet on January 12, 2026, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.