Buca Di Beppo, the popular restaurant chain known for its Italian fare, has filed for Chapter 11 bankruptcy. This occurred just days after abruptly closing 13 of its locations. The filing, made just before midnight on August 4, 2024, reveals the Orlando-based company is grappling with financial difficulties, listing assets between $0 and $50,000 while owing between $15 million and $50 million to over 30 creditors.
The bankruptcy filing follows the sudden closure of several underperforming stores. The closed locations include:
The company is also seeking to reject the leases for these closed locations as part of its commitment to financial recovery.
Buca Di Beppo, which operates approximately 44 locations across 14 states and 2 international sites, has been hit hard by a significant drop in sales. Rising food and labor costs, ongoing staffing challenges, and shifting customer preferences have compounded the chain's financial woes.
The restaurant industry, already struggling with inflation and a severe staffing shortage, has seen several companies face similar difficulties, exacerbated by the lasting effects of the COVID-19 pandemic. The pandemic has led to decreased customer demand and increased operational costs, making it difficult for many restaurants to recover.
As Buca Di Beppo navigates this challenging period, the company remains committed to its remaining locations. The first-day bankruptcy hearing is scheduled for Wednesday, August 7, 2024, at 10:30 a.m. Central Time. The hearing will provide more details on the company's plans for restructuring and its potential impact on the remaining locations, reassuring the audience of its dedication.