San Antonio, January 31, 2026
Adrian Martinez, owner of Smoke BBQ + Skybar in San Antonio, is facing serious allegations of financial mismanagement. A lawsuit claims he unlawfully diverted funds from his business to other venues and commingled business and personal accounts. This follows a recent Chapter 7 bankruptcy filing listing approximately $2.7 million in debt. While the lawsuit seeks over $1 million in damages, representatives state that the restaurant remains operational and has plans for the future despite the ongoing legal issues.
San Antonio Restaurateur Adrian Martinez Faces Allegations of Financial Mismanagement
San Antonio, Texas – Adrian Martinez, owner of Smoke BBQ + Skybar, is facing serious allegations of financial misconduct following the establishment’s recent bankruptcy filing. The claims suggest that Martinez engaged in activities that may have unlawfully diverted funds from the business.
Allegations of Financial Mismanagement
In a lawsuit filed by WellMed Medical Management Inc.’s former president, Martinez is accused of “looting” the now-bankrupt Smoke BBQ + Skybar. The lawsuit alleges that Martinez transferred funds from the business to other venues without proper consent, including Texas River Bar, Brooster’s Backyard Icehouse, Recess Amusement Bar, and Tipsy Cowgirl. Additionally, the suit claims that Martinez commingled business funds with his personal accounts, constituting financial mismanagement and breach of fiduciary duty. The lawsuit seeks over $1 million in damages and requests the appointment of a receiver to manage Smoke Skybar. Martinez has denied these allegations.
Bankruptcy Filing and Business Operations
In late November, Martinez filed for Chapter 7 bankruptcy in the Western District of Texas, listing “Smoke BBQ + Skybar 78202 LLC” as the debtor with approximately $2.7 million in debt. Despite the bankruptcy filing, Smoke Skybar representatives have stated that the business remains operational and is “moving ahead” with plans for the future.
Background on Smoke BBQ + Skybar
Smoke BBQ + Skybar, located in downtown San Antonio, has been a notable venue offering a combination of dining and entertainment. The establishment has undergone several changes over the years, including relocating to a new 12,000-square-foot space on East Crockett Street in 2020 and introducing a sky bar with views of the downtown skyline.
Previous Legal Issues Involving Martinez
In April 2022, Adrian Martinez was arrested for allegedly assaulting a VIA Transit police officer after refusing to pull over. He faced charges including driving while intoxicated, evading arrest, resisting arrest, and attempting to take a weapon from an officer.
Current Status
As of January 31, 2026, the legal proceedings regarding the allegations against Adrian Martinez are ongoing. The outcome of the lawsuit and its potential impact on the future operations of Smoke BBQ + Skybar remain to be seen.
Frequently Asked Questions (FAQ)
What are the allegations against Adrian Martinez?
Adrian Martinez, owner of Smoke BBQ + Skybar, is accused of financial misconduct, including transferring funds from the business to other venues without proper consent and commingling business funds with personal accounts. These actions are alleged to constitute financial mismanagement and breach of fiduciary duty.
What is the current status of Smoke BBQ + Skybar?
Despite filing for Chapter 7 bankruptcy in November 2025, Smoke BBQ + Skybar representatives have stated that the business remains operational and is “moving ahead” with plans for the future.
Has Adrian Martinez faced legal issues before?
Yes, in April 2022, Adrian Martinez was arrested for allegedly assaulting a VIA Transit police officer after refusing to pull over. He faced charges including driving while intoxicated, evading arrest, resisting arrest, and attempting to take a weapon from an officer.
What is the financial situation of Smoke BBQ + Skybar?
As of November 2025, Smoke BBQ + Skybar filed for Chapter 7 bankruptcy, listing approximately $2.7 million in debt. The bankruptcy filing is part of the ongoing legal proceedings involving the business.
Key Features of the Situation
| Feature | Details |
|---|---|
| Allegations | Financial misconduct, including unauthorized fund transfers and commingling of funds |
| Bankruptcy Filing | Chapter 7 bankruptcy filed in November 2025, listing approximately $2.7 million in debt |
| Business Status | Smoke BBQ + Skybar remains operational, with plans for future development |
| Previous Legal Issues | Arrested in April 2022 for allegedly assaulting a VIA Transit police officer |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
