Dive Brief:
- Buca di Beppo filed for Chapter 11 bankruptcy protections Monday with the U.S. Bankruptcy Court for the Northern District of Texas, the company said in a press release.
- The company has between 200 and 999 creditors, estimated assets of between $10 million and $50 million and estimated liabilities between $50 million and $100 million, per a court filing.
- The chain expects this move to help improve operations and enhance the dining experience for its customers. The company said the bankruptcy filing will facilitate a sale of the company, which Earl Enterprises, then known as Planet Hollywood, bought in 2008.
Dive Insight:
Buca di Beppo will continue operations at 44 locations, William Snyder, chief restructuring officer said. The company also has one location yet to be opened, according to the press release.
Over the last few months, the chain closed a handful of locations, including its only Hawaii restaurant, one in Worthington, Ohio, its last Pittsburgh unit and a location in Maitland, Florida. These locations had been open for over two decades. Last week, the chain closed 13 underperforming restaurants across the country, leaving it with 44 units, according to Restaurant Business. The chain peaked at 95 locations in 2013. Last year, it had 64 units.
"This is a strategic step towards a strong future for Buca di Beppo,” said Rich Saultz, president of Buca di Beppo. “While the restaurant industry has faced significant challenges, this move is the best next step for our brand. By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.”
The company didn’t provide any context as to what led to its bankruptcy in the press release, but several chains have struggled with growing labor and food costs, increased debt and declines in traffic. One customer who lamented the closure of the Hawaiian unit said she went only once or twice a year for special occasions.
The chain started in 1993 in Minneapolis and is known for its over-the-top Italian decor and big portions.
Other chains, including Red Lobster, Rubio’s and Tijuana Flats, filed for Chapter 11 bankruptcy protections earlier this year, with Red Lobster and Rubio’s now finalizing new ownership. Other casual chains including Hooters, Bloomin’ and TGI Fridays closed underperforming restaurants in 2024.
