Buca di Beppo, famed Italian restaurant chain files for bankruptcy

Aug 08, 2024 12:17 AM IST

Buca di Beppo plans to restructure 44 of its “core” locations, which are located across 14 states in the US

Italian restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy on Monday, citing increased food and labour costs. The company, headquartered in Orlando, has just $10 million to $15 million in assets, in striking contrast to its $100 million in liabilities, according to its petition filed in Dallas. It is the latest popular restaurant to file for bankruptcy, joining the likes of Red Lobster.

Popular Italian restaurant chain Buca di Beppo has filed for Chapter 11 bankruptcy

Buca di Beppo files for bankruptcy after weakened sales

Buca di Beppo plans to restructure 44 of its “core” locations, which are located across 14 states in the US. While the company still has a new location on the books, it has previously shut down 12 of its locations, per Reuters. The restaurant, which specialises in Italian-American food, was founded in 1993 and is a chain of 81 locations as a subsidiary of Planet Hollywood.

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Following the bankruptcy protection filing, Rich Saultz, the chain’s president, said in a statement that this move is “a strategic step towards a strong future” for the company. “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,” Saultz added.

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The statement added that as Buca di Beppo undergoes the Chapter 11 process, it will continue serving food at its existing restaurants as “usual.” Chief Restructuring Officer William Snyder explained that the company is still “open for business in 44 locations.” “We expect day-to-day operations to continue uninterrupted,” Snyder continued, adding, “We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future.”