Another Arizona restaurant chain is facing financial uncertainty after filing for Chapter 11 bankruptcy protection, raising concerns about what could happen to several popular locations across the state.
Salt & Lime Modern Mexican Grill, a Scottsdale-based chain known for tacos, margaritas, and happy hour crowds, filed for bankruptcy in late February as pressure continues mounting across the restaurant industry.
Arizona chain enters Chapter 11 bankruptcy
Salt and Lime 44 LLC filed for Chapter 11 bankruptcy on February 26, 2026, in the U.S. Bankruptcy Court for the District of Arizona. Court documents showed the company listed between $100,001 and $1 million in both assets and liabilities, with as many as 99 creditors tied to the case.
The company operates several Arizona restaurants, including locations in Scottsdale and Phoenix. Despite the filing, the restaurants have remained open while restructuring efforts continue.
The chain first launched in Scottsdale in 2014 and later expanded with additional Valley locations, including a newer restaurant near Camelback Village Center.
Bankruptcy reflects broader restaurant pressures
The filing highlights ongoing financial strain facing restaurants across Arizona and nationwide.
Industry experts say independent and regional chains continue dealing with rising food costs, higher labor expenses, inflation, and softer consumer spending. Mexican restaurant chains in particular have seen a wave of restructuring efforts over the past two years.
Several national restaurant brands — including On The Border and Abuelo’s — have also filed for bankruptcy or closed locations amid declining traffic and mounting operational costs.
What the bankruptcy could mean for Arizona
For now, Salt & Lime locations remain open, but Chapter 11 filings often create uncertainty for employees, vendors, landlords, and customers.
While some restaurant chains successfully reorganize and emerge from bankruptcy, others ultimately close locations or sell assets during the process. Arizona diners are closely watching to see whether Salt & Lime can stabilize operations and avoid further disruption.
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