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Trudy's Tragedy: Iconic Tex-Mex Chain Declares Bankruptcy, Closes All But One Location

May 10, 2024 12:35 AM EDT | By Jep Collins

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Austin's iconic Trudy's Tex-Mex chain is facing tough times, with only one restaurant left standing. This past Monday, the once-thriving chain had to close its South Star location at Little Texas Lane and Interstate 35.

All that remains of the Trudy's empire is the North Star restaurant, located at Burnet Road and U.S. 183. Despite these challenges, there's hope for a revival of the beloved Tex-Mex brand.

Trudy's Tex-Mex Faces Narrow Future

This closure is part of a series of setbacks for the chain, which has seen a dwindling number of outlets over recent years.

Trudy's, synonymous with Tex-Mex in Austin since 1977, faced significant financial hurdles, culminating in a bankruptcy filing a few years ago. In 2020, North Carolina-based venture capital firm Hargett Hunter Capital Management bought the chain for $6.5 million.

The deal included three Trudy's locations and the South Congress Cafe at the time of purchase. Despite plans to expand the brand throughout Texas and nationally, the chain has only seen closures since then.

In addition to the recent closure, Hargett Hunter had plans to reopen the University of Texas campus-area location at 409 W. 30th St., which had been closed temporarily. However, plans fell through due to extensive property damage from a fire, vandalism, and legal issues concerning the property lines.

The property was sold in 2022 and is now up for lease. A Hargett Hunter representative mentioned that the firm is actively searching for a new site in the area, suggesting a possible comeback for Trudy's brand.

Also Read: Iconic Sandwich Chain J's Steaks and Subs Confirms Closure of Multiple Locations, Leaves One Remaining

Trudy's Eyes Expansion Despite Setbacks

Person holding a wooden spoon

(Photo : Pexels/LosMuertosCrew)

Scott Taylor, the newly appointed CEO of Trudy's Tex-Mex, has been in his role for just a month but is already steering the company towards ambitious new ventures despite recent closures.

Taylor revealed plans to expand not only within Austin but also to extend Trudy's brand to Houston and San Antonio.

During an interview with ABC affiliate KVUE, Taylor discussed the factors leading to the closure of their South Austin location. "We explored many options to keep this location operational, but the economic factors and recent changes in the nearby shopping area made it unfeasible," he explained.

Despite this setback, Taylor remains optimistic, expressing gratitude to the South Austin community for their years of support and encouraging them to visit the remaining North Star restaurant.

Chris Armstrong, the Director of Operations at Trudy's North Star, echoed this positive outlook. "The future is bright for Trudy's as we return to our cherished roots and reintroduce our authentic Tex-Mex to both new and loyal patrons," Armstrong stated.

He also hinted at exciting updates to the menu, promising the return of popular dishes and specials that have long been favorites among their customers.

The leadership at Trudy's is focused on overcoming recent challenges and is energized about expanding its culinary presence across Texas.

This strategic direction comes at a time when other small chain restaurants are also facing closures, like Strip's Chicken in Kansas City, Missouri, where the owner cited crime as the primary reason for shutting down one of its locations.

Related Article: Sandbar Mexican Grill Says Goodbye: Final Location Closure Marks End of Popular Chain

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