MJP –
Surprise! A chain of Italian restaurants has filed for bankruptcy following reports that several of its sites would soon be closing.
Buca di Beppo approached its creditors for assistance in filing for Chapter 11 bankruptcy protection on August 4, intending to reorganize.
A bankruptcy petition has been filed by the Orlando, Florida-based fast-casual restaurant business Buca di Beppo.
A group of nine businesses, including Buca Investments, the biggest shareholder in the company, have petitioned the United States Bankruptcy Court in Dallas for the Northern District of Texas, claiming a range of $10 million to $50 million in liabilities.
Sales plummeted, food and labor prices rose, staffing problems persisted, and consumers’ tastes shifted, among other reasons listed by the creditors as leading to the bankruptcy declaration.
13 Underperforming Buca di Beppo restaurants, including those in Salt Lake City and Sacramento, had just been shuttered before the bankruptcy.
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In addition to its 44 main locations in 14 states and 2 overseas locations, the company is now building a new location.
The debtors will approach the legal processes in an effort to have their bankruptcy cases administered together.
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Due to various financial constraints, Buca di Beppo has declared bankruptcy, although it will keep a smaller number of stores open for business.
According to Buca di Beppo president Rich Saultz, “This is a strategic step towards a strong future for Buca di Beppo.”
The restaurant business has been through a lot, but this is the right decision for our company moving forward.
We are getting back on our feet and ready to take on the future by reorganizing with the help of our lenders.
