Italian restaurant chain files for Chapter 11 bankruptcy
FILE - Sinage of Buca di Beppo. (Credit: Clayton Chase/Getty Images for Buca di Beppo)
Italian restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy protection on Monday.
The company cited rising food and labor costs as well as staffing challenges as reasons for the bankruptcy filing. It has $10 million to $50 million in assets and $50 million to $100 million in liabilities, according to its Chapter 11 petition filed in U.S. Bankruptcy Court in Dallas.
Buca di Beppo has plans to restructure 44 "core" locations, with a new restaurant location also in the pipeline. The company previously closed 12 of its locations, Reuters reported.
"This is a strategic step towards a strong future for Buca di Beppo," Rich Saultz, the chain's president, said in a statement. "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."
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Buca di Beppo will keep serving guests the family-style Italian meals that the chain is known for at its existing restaurants "as usual" while undergoing the Chapter 11 process, it said.
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"We are open for business in 44 locations, and we expect day-to-day operations to continue uninterrupted," Chief Restructuring Officer William Snyder said in a statement. "We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future."
Buca di Beppo also said it will honor all gift cards, reservations and promotional services.
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The chain asked the U.S. Bankruptcy Court for the Northern District of Texas to administer its bankruptcy case jointly with a handful of other affiliated entities.
Buca di Beppo’s bankruptcy filing marks the latest in the restaurant industry this year.
In recent months, Tijuana Flats, Red Lobster and Rubio’s Coastal Grill have each entered Chapter 11 bankruptcy proceedings.
Each had shuttered a number of locations prior to that.
Reuters contributed to this report