Sushi Zushi, once a go-to name for rolls around San Antonio, is now getting ready to put its last three local restaurants up for sale after a court-supervised reorganization failed to pull the business back into the black. Company attorneys have asked a federal bankruptcy judge to let a broker shop the locations to buyers who might keep the concept alive, or at least squeeze some value out of what is left.
Court Hearing And Broker Pitch
An expedited application filed last week asks the U.S. Bankruptcy Court to approve Transworld Business Advisors of San Antonio North and agent Walter Szuja to market the restaurants. The motion is set for a Wednesday hearing, according to the Inforuptcy docket, which also shows that at least one creditor has already asked to appear at the hearing by Zoom.
What The Numbers Look Like
Court papers attached to the broker request estimate the combined value of the three restaurants at roughly $1.7 million to $2.7 million. The company reported sales of $16.9 million in 2022, which fell to $9.6 million in 2023 and to about $3.9 million through the first half of 2024. A report filed in September in the case also showed a negative cash flow of about $31,000, according to the San Antonio Express-News.
Where The Remaining Shops Are
The company’s locations page lists Lincoln Heights, Stone Oak and the Colonnade as Sushi Zushi’s last three San Antonio sites. It shows addresses including 999 E. Basse Road and 18720 Stone Oak Parkway #154, and still posts hours and phone numbers for those units on Sushi Zushi, suggesting the restaurants are still open for now.
Ownership Drama, Lawsuits And Payout Hopes
Sushi Zushi was founded by Alfonso Tomita in 2001 and eventually shrank to three outlets after pandemic pressures and a 2018 partnership that handed majority control to Jason Kemp. The breakdown of that partnership led to competing lawsuits that now hang over the bankruptcy proceedings. Executives tried moves like ghost-kitchen partnerships and bringing back free delivery, but court filings say those efforts never restored lost revenue.
Ron Smeberg, the chain’s bankruptcy attorney, told the San Antonio Express-News he is “hoping to get a really good group” to buy the restaurants. He expects sale proceeds will be enough to pay off secured lenders, taxing authorities and some priority claims, with unsecured creditors potentially recovering about 50 cents on the dollar.
What Happens Next
If the court signs off on hiring Transworld, marketing could start quickly, with potential buyers contacted in the weeks following the hearing. Judge Michael Parker is set to decide on the broker request, while creditors watch to see whether a bidder steps up to preserve the Sushi Zushi brand or instead repurposes the spaces for entirely new concepts.
