After more than 16 years in Hays, Carlos O’Kelly’s will be closing its doors Sunday.

“It is with deepest regret that we are making the difficult decision to close the Hays Carlos O’ Kelly’s. We have enjoyed being a part of the Hays community for 16 years,” Dave Phillips, director of restaurant marketing for Carlos O’Kelly’s, said in a statement. “However, we are in an untenable lease situation that makes it impossible to operate profitably. We could not have been prouder of the management team that carried us for those 16 years and we will be creating other positions in our company for them.”

The Mexican-themed restaurant received notice of the closure this week, and staff was informed Thursday evening. The restaurant employs approximately 45 people, 12 of them on a full-time basis.

“When I found out about this, my thoughts went to my staff,” said Darren Schumacher, general manager. “We had a staff meeting last night … we wanted them to hear it first.”

The company is offering all employees with at least a year of tenure a severance package, and will attempt top relocate members of the management team.

“Our company has been very gracious in helping assist us,” Schumacher said.

Schumacher, who has been general manager for nearly 11 years, also serves on the Hays USD 489 Board of Education. He could say only that he is “staying with the company … but still working on specifics.”

Carlos O’Kelly’s will close its doors for the last time at 10 p.m. Sunday.

“We would love nothing more than for our regulars and the community to come out and get Carlos O’Kelly’s one last time,” Schumacher said.

Related story: Economic development director looks to aid employees, find a replacement business.