SUDDEN SHUTTERS
Sushi Zushi closes flagship San Antonio location in Lincoln Heights
Sushi Zushi is now down to two San Antonio locations.
After seeking a buyer for all its restaurants in March, a once-mighty San Antonio sushi chain has closed its Lincoln Heights flagship. Sushi Zushi says it is moving its 999 E. Basse Rd. outpost, but details remain muddy.
“We are excited to announce that Sushi Zushi will be relocating to a new location, which will be announced soon,” reads a note posted at the restaurant. “We sincerely apologize for any inconvenience and greatly appreciate your continued support and understanding.”
The closure follows a turbulent two years for the formerly thriving brand, founded in 2001 . The parent company filed for Chapter 11 bankruptcy protections in June 2024, following up with filings for its location’s LLCs in July 2024. At the time, Sushi Zushi said it was unable to meet financial obligations due to costs associated with post-pandemic restaurant closures and high-interest
loans.
At the time, founder Alfonso Tomita was involved in bitter litigation accusing majority partner Jason Kemp and his TXFMP Management, LLC partners Allen Jones and Larry Harris of misusing millions of company funds. According to San Antonio Express-News reporting, the firm was brought on to help grow the brand.
A judge confirmed a five-year reorganization plan in March 2025. Sushi Zushi attempted several moves to recover from an industry-wide slump, including launching new ghost kitchen concepts and resuming free delivery. None restored lost revenue.
By March 2026, it was unclear if any of Sushi Zushi’s three San Antonio restaurants would continue to operate. The Texas Comptroller of Public Accounts threatened to shut the entire business down, alleging the restaurants owed more than $500,000 in unpaid taxes. The action put a wrench in the chain’s plans to find a buyer for the business.
"I guess if we had a crystal ball and realized that restaurants were going to continue to struggle as much as they have, then we probably would have cut the debt way back," bankruptcy attorney Ron Smeberg told the Express-News. "We have to make an honest assumption of what we think is going to happen, and I think we just guessed wrong."
It’s unclear whether the Lincoln Heights closure has anything to do with the ongoing drama. Although both the restaurant notice and the website refer to the new location, neither gives details about where the chain might next emerge. Sushi Zushi did not immediately return a request for comment.
For now, fans can get their favorite rolls at two locations: 9867 I-10 in the Colonnade and 18720 Stone Oak Pkwy in Stone Oak. According to the website, the chain is also debuting an express concept at 8355 Agora Pkwy in Selma, although there’s no estimated opening date.
