Garduño's battles tax, lease arrears

ALBUQUERQUE (KRQE) - One of New Mexico's best-known restaurant chains is facing more financial problems first nearly losing its liquor license over still-unpaid taxes and now being in arrears on rent to the city of Albuquerque.

KRQE News 13 has learned the Garduño's Restaurant chain may be on the hook for claims approaching $900,000.

David Garduño told News 13 that for the last two years he watched the soft economy chip away at his family business' profits. And that was before learning the company was way behind paying sales taxes and rent.

“I didn't want to get out of bed,” Garduño said. “I wanted to stay home.”

Garduño learned the business he built from scratch suddenly faced claims approaching $1 million.

That tab includes:

• $750,000 the state says it is owed in sales taxes.
• $143,000 the city of Albuquerque wants for more than a year's worth of unpaid rent.

Garduño's leases space for its Balloon Fiesta Park restaurant.

“We've also told them we have a responsibility to the taxpayers of this community,” city Chief Operations Officer Irene Garcia said. "If there are monies owed the city, we have to move forward with that.”

Garduño said his lawyer instructed him not to discuss how the company got in this position.

However on Wednesday Garduño's issued a statement regarding a high-ranking executive that it fired in late 2007.

"Ownership was led to believe taxes and rent were being paid, however, after the executive was terminated, we realized this was not the case," the statement said.

Garduño said a combination of a new menu, new investors and new and old customers will help whittle down the debt.

“We had customers come in and say, 'We want to support you to make it over the hump,'” he said. “So we've had enormous support through this whole thing, and I'm so incredibly grateful.”

And the owner of this 40-year-old business promised it will square its tax and rent bills soon.

“We suspect this thing will be all over with within six months,” Garduño added.

In the meantime, he said, despite the debt he hasn't laid off a single worker.

The company, Garduño's of Mexico Restaurant & Cantina, also got an international boost this week with word its effort to expand into Asian markets is meeting with some success.

During a promotion for American foods in Taiwan two pallets of Garduño's salsa was sold with an order for an additional 60,000 pounds pending. Garduño's executive and chef Eddie Adams also conducted popular exhibitions and has been invited back to help guide a New Mexico food promotion at a major hotel.

Additional details on the international promotional event are available from the New Mexico Economic Development Department.