As an avid fan of the show “Bar Rescue,” I’ve seen countless businesses that look healthy on the outside, but actually have a rotten core.

Sometimes it’s staff overpouring liquor, which over the course of a year can lead to hundreds of thousands in losses. In other cases, the business brings in customers, but it lacks the right product mix to make money from them.

And sometimes bar and restaurant owners simply price their menus incorrectly. They might sell a lot, but if the costs are too high, then low profit margins slowly force the company out of business.

Smoke BBQ + Skybar, a one-time chain down to its final location, appears to be set for closure.

“The fate of popular San Antonio party bar Smoke BBQ + Skybar at 1100 E. Houston St. is now in question after the venue filed for Chapter 7 bankruptcy. The filing comes as owner Adrian Martinez faces multiple lawsuits in Bexar County District Court,” CultureMap San Antonio reported.

Smoke BBQ + Skybar Timeline

• 2015, Original Concept Launch: Smoke: The Restaurant opens in San Antonio under owner Adrian Martinez, laying the groundwork for multiple BBQ/entertainment ventures that would later follow, according to Culture Map San Antonio.
• Expansion Years (2015 to 2022): Martinez attempts rapid expansion of Smoke concepts with locations and spin‑offs in several San Antonio areas (East Side, River Walk, Stone Oak) and even Corpus Christi. All of these locations eventually close, added Culture Map San Antonio.
• 2022, Houston Street Event Expansion: Smoke BBQ + Skybar at 1100 E. Houston St. (the downtown venue known for rooftop vibes, BBQ, and nightlife) significantly expands its calendar with high‑profile rooftop events featuring artists such as 2 Chainz and 50 Cent during this year.
• July 22, 2024: Rooftop Shooting Incident: A deadly stray‑bullet shooting (involving a local coach) occurs on the rooftop, prompting Smoke to shut down the outdoor concert stage and undertake safety renovations to the patio and event spaces, according to San Antonio Current.
• Prior to Sept. 2024:  In the months leading into September, the business reportedly stops paying rent for the Houston Street space after lease agreements expire, triggering legal fights with the property owner, reported MySanAntonio.
• Sept. 15, 2024, Partial Closure and Lease Exit: Smoke vacates the Houston Street property after lockout and eviction notices, the same day Martinez publicly announces safety-related changes following the shooting incident, added MySanAntonio.
• 2025, Business Fails to Generate Revenue: Court records show $0 in revenue for the year 2025 for Smoke BBQ + Skybar, indicating prolonged financial troubles before bankruptcy, according to MySanAntonio.
• Nov. 20, 2025, Chapter 7 Bankruptcy Filed:Smoke BBQ + Skybar 78202 LLC files a voluntary Chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the Western District of Texas (Case No. 5:25‑bk‑52819), signifying intent to liquidate assets and wind down operations, according to filings shared on PacerMonitor.
• Dec. 30, 2025, 341 Meeting Scheduled: The Chapter 7 case schedules a Creditors’ 341 Meeting of creditors, a standard step in the liquidation process, with the deadline for claims set for Feb. 24, 2026, reported Inforuptcy.

Smoke BBQ used to operate multiple locations.

Shutterstock

Overexpansion and shooting hurt Smoke BBQ

Many restaurant owners drive themselves into bankruptcy when they expand too fast.

“It is an ironic-sounding phrase, but for most businesses, too quick growth can be a direct march into financial failure. Faster expansion is most definitely one part of any firm’s success, but when conducted wildly, even the best and brightest ideas will result in financially risky debt,” according to First Choice Debt Solutions.

That can be the beginning of the end.

“Most rapidly growing companies fall into the growth trap — an all-too-common situation in which rapid expansion overwhelms finances, operations, and stability,” the website continued.

It can also be hard for a brand to recover from a situation like the shooting that took place at Smoke BBQ + Skybar.

“In business, a company’s reputation is like a delicate piece of art — valuable yet fragile. A reputation crisis can hit when least expected, threatening to unravel years of dedication and trust-building,” Reputation Sciences shared.

How a company handles a reputation crisis can impact whether its business rebounds.

“Crises can severely impact a company’s reputation, causing public perception and stakeholder trust to erode rapidly. The effectiveness of the company’s immediate response plays a critical role in determining the extent of the damage. In today’s fast-paced media environment, the speed and tone of a company’s response are crucial,” the website added.

Sometimes, however, that damage is hard to repair.

In West Palm Beach, where I live part of the week, for example, when a popular nightlife location had a series of violent incidents, it never recovered. Even later, similar businesses failed because of the lingering negative sentiment.

“Legal liabilities can have a profound impact on an organization during a crisis. They can lead to financial losses, disrupt operations, and damage the organization’s reputation. In some cases, legal liabilities can even threaten the survival of the organization. For example, regulatory fines, class action lawsuits, and breach of contract claims can result in substantial financial burdens,” according to Chambers and Partners.

More Smoke BBQ Chapter 7 facts

• In bankruptcy schedules, Smoke BBQ listed nearly $2.7 million in liabilities but assets valued at $50,000 or less, indicating a large gap that creditors likely won’t be fully repaid, according to PacerMonitor.
• The debts include substantial claims such as about $883,000 owed to a private creditor (Jacob Solis), $300,000+ in unpaid rent and damages, investor claims of around $600,000, and delinquent taxes. Multiple lawsuits had already been filed in local court before the bankruptcy, according to PacerMonitor.
• Court records reported that the business showed $0 in revenue for the entire year of 2025, signaling severe financial distress leading up to the filing,” MySanAntonio reported.

“MySA obtained documents independently which confirmed Martinez owes nearly $2.7 million in debt he says he can’t afford to pay back. In fact, he claims to own no property and that his series of businesses have a total asset value of $50,000 or less,” the website shared.

Another civil suit from an investor who put up the cash for the Houston Street property, LBJR Investments, is seeking more than $600,000 from Martinez and his companies for the building itself. The lawsuit claims he also fell behind on his loan. Martinez’s bankruptcy filing shows he also owes another $883,000 to a Jacob Solis.

“Martinez and his business were sued by Bexar County, the City of San Antonio and the North East Independent School District for delinquent taxes on a now defunct Smoke BBQ location on the far Northeast Side. Court documents show Martinez owed more than $12,000 in taxes for that location from 2023 but failed to appear in court when officials filed suit over the missing money,” MYSA added.

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