Orlando, Fla.-based Buca di Beppo, a family-style Italian concept founded in 1993, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of Texas.
In its filing, the company said it owes at least $15 million to $50 million to at least 30 creditors. It cited declining sales, rising costs, continued staffing challenges and changes in consumer preferences for its challenges.
This move comes about a week after the chain abruptly closed more than a dozen locations. There remain 44 locations across 14 states and two international locations within the system. Further, the company is in the process of opening a new location. Buca said in a release that it is committed to ensuring its remaining restaurants continue to operate as usual, while all gift cards, reservations, and promotional services remain active and redeemable.
The company said the goal of the restructuring effort is to ensure a “seamless transition and position the brand for future success,” while optimizing operations and the dining experience.
"This is a strategic step towards a strong future for 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," president Rich Saultz said in a statement. "Buca di Beppo has been a beloved gathering place for celebrations and memorable meals for many years, and we are enthusiastic about entering this next phase of our brand's story."
"We believe this path will best allow us to continue to serve Buca's patrons and communities for many years to come. We are open for business in 44 locations, and we expect day-to-day operations to continue uninterrupted. We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future,” Buca C LLC chief restructuring officer William Snyder said in a statement.
Buca ended 2023 with $172.3 million in sales, a 4.7% decline year-over-year, according to Technomic Ignite data. Its footprint also shrunk year-over-year by 5.9%, ending 2023 with 64 locations. By comparison, the company finished 2019 with 76 locations and $189.7 million in sales.
With this filing, Buca joins a growing number of restaurant concepts seeking Chapter 11 bankruptcy protection as operating costs remain high and consumer spending softens. At the end of last week, World of Beer filed for bankruptcy protection, while earlier this year, filings were made by Red Lobster, Rubio’s, Tender Greens and Tocaya, Tijuana Flats, Melt Bar & Grilled, Sticky Fingers, Boxer Ramen, Oberweis Dairy, Foxtrot/Dom’s Kitchen, and Pizza Hut franchisee EYM.
Contact Alicia Kelso at [email protected]
