San Antonio, January 8, 2026
Smoke BBQ + Skybar, a prominent dining venue in San Antonio, has filed for Chapter 7 bankruptcy, reporting liabilities of approximately $2.7 million and zero revenue for 2025. The owner, Adrian Martinez, has cited multiple creditor claims, including significant unpaid rent and investor lawsuits. The financial situation raises concerns about the future of the establishment and its impact on the local community and culinary scene.
San Antonio, Texas – Smoke BBQ + Skybar Owner Files for Bankruptcy Amid $2.7 Million in Debt
San Antonio’s Smoke BBQ + Skybar has filed for bankruptcy, citing nearly $2.7 million in liabilities and reporting no revenue for 2025.
Bankruptcy Filing and Financial Details
Adrian Martinez, the owner of Smoke BBQ + Skybar, filed a Chapter 7 bankruptcy petition in November 2025 under the name Smoke BBQ + Skybar 78202 LLC. Court records indicate that the business owes approximately $2.7 million to various creditors, with total assets valued at $50,000 or less. Notably, the company reported zero revenue for the year 2025.
Creditor Claims and Legal Actions
The bankruptcy documents reveal several significant claims against the business. Among these, East Houston Partnership alleges over $300,000 in unpaid rent and damages. Additionally, an investor lawsuit seeks upwards of $600,000, while another claim amounts to approximately $883,000. These financial obligations have contributed to the company’s decision to seek bankruptcy protection.
Operational Challenges and Venue Impact
The East Houston Street location of Smoke BBQ + Skybar has faced operational difficulties, including a tragic incident in July 2024 which led to the scaling back of events and a reevaluation of security measures. Despite these challenges, the venue continued to promote events into late 2025, even as bankruptcy proceedings were underway. The future of this location and other associated venues remains uncertain as the bankruptcy process unfolds.
Understanding Chapter 7 Bankruptcy
A Chapter 7 bankruptcy filing initiates an automatic stay, halting most collection efforts. A court-appointed trustee is responsible for identifying and, where possible, liquidating non-exempt assets to pay creditors. This process aims to provide a structured means for businesses to address overwhelming debts and seek a fresh financial start.
Implications for the San Antonio Community
The bankruptcy of Smoke BBQ + Skybar raises questions about the future of its venues, including the downtown rooftop location and the La Villita site. Customers with upcoming bookings and lease agreements may experience disruptions. The local community and patrons await further developments as the bankruptcy proceedings progress.
Background on Smoke BBQ + Skybar
Smoke BBQ + Skybar, known for its rooftop dining experience in downtown San Antonio, has been a notable establishment in the city’s culinary scene. The business expanded rapidly in recent years but faced financial difficulties leading to the bankruptcy filing. The outcome of the bankruptcy proceedings will determine the future of the brand and its impact on the local hospitality industry.
Related Restaurant Industry Challenges
Smoke BBQ + Skybar’s bankruptcy is part of a broader trend in the restaurant industry, where establishments are grappling with financial strains. For instance, Dickey’s Barbecue franchisee Smokin’ Dutchman Holdings filed for Chapter 11 bankruptcy in Michigan, citing excessive demands from its parent company. Similarly, Bar Louie filed for Chapter 11 bankruptcy, closing multiple locations due to significant debt. These cases highlight the financial challenges faced by the restaurant sector in recent times.
Conclusion
The bankruptcy filing of Smoke BBQ + Skybar underscores the financial challenges within the restaurant industry. As the bankruptcy process unfolds, stakeholders, including creditors, employees, and patrons, await clarity on the future of the business and its venues in San Antonio.
Frequently Asked Questions (FAQ)
What is the current status of Smoke BBQ + Skybar?
Smoke BBQ + Skybar has filed for Chapter 7 bankruptcy, reporting approximately $2.7 million in liabilities and zero revenue for 2025.
What does a Chapter 7 bankruptcy filing entail?
A Chapter 7 bankruptcy filing initiates an automatic stay, halting most collection efforts. A court-appointed trustee is responsible for identifying and, where possible, liquidating non-exempt assets to pay creditors.
How does this bankruptcy affect the San Antonio community?
The bankruptcy raises questions about the future of Smoke BBQ + Skybar’s venues, including the downtown rooftop location and the La Villita site. Customers with upcoming bookings and lease agreements may experience disruptions.
What is the background of Smoke BBQ + Skybar?
Smoke BBQ + Skybar is known for its rooftop dining experience in downtown San Antonio. The business expanded rapidly in recent years but faced financial difficulties leading to the bankruptcy filing.
Are other restaurants facing similar financial challenges?
Yes, other establishments like Dickey’s Barbecue franchisee Smokin’ Dutchman Holdings and Bar Louie have filed for bankruptcy, citing significant debt and operational challenges.
Key Features of Smoke BBQ + Skybar’s Bankruptcy
| Feature | Details |
|---|---|
| Bankruptcy Filing | Chapter 7 bankruptcy filed in November 2025 under Smoke BBQ + Skybar 78202 LLC |
| Financial Liabilities | Approximately $2.7 million in debts, with total assets valued at $50,000 or less |
| Revenue Report | Zero revenue reported for the year 2025 |
| Creditor Claims | Claims include over $300,000 in unpaid rent and damages, upwards of $600,000 from an investor lawsuit, and approximately $883,000 from another claim |
| Operational Challenges | Venue faced a tragic incident in July 2024, leading to scaled-back events and security reevaluation |
| Industry Context | Reflects broader financial challenges in the restaurant industry, with other establishments filing for bankruptcy due to significant debt and operational issues |
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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.
