Buca di Beppo Files Chapter 11 Bankruptcy

Italian-American restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy protection on Monday, Aug. 5. However, the company plans to keep its current locations open and employ its staff while restructuring internally.

In a statement to Reuters, Buca di Beppo’s president, Rich Saultz, called the restaurant “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.”

Saultz subsequently told Fox Business, “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.”

Buca di Beppo files Chapter 11 bankruptcy, has plans for restructuring https://t.co/Ua7wWdZwF3

— Detroit Free Press (@freep) August 5, 2024

According to the company’s Chapter 11 filing with the U.S. Bankruptcy Court in Dallas, Buca di Beppo has declared assets ranging from $10 million to $50 million and liabilities between $50 million and $100 million.

The bankruptcy filing comes only days after the company abruptly closed 13 underperforming stores, reducing its presence by over 20%, as reported by Restaurant Business. Buca di Beppo now has approximately 44 locations across 14 states and two international locations. According to the filing, the company has been hit hard by a significant drop in sales. Rising food costs added to its bottom line problems as well as continued staffing challenges and changes in customer preferences.

The company said the bankruptcy filing would facilitate a sale of the company, which Earl Enterprises, then Planet Hollywood, bought in 2008, per Nation’s Restaurant News. At that time, Robert Earl, Planet Hollywood’s chief executive and founder, said the company was “delighted to welcome Buca di Beppo to the Planet Hollywood family as part of our ongoing strategy to introduce new brands into our restaurant group while simultaneously expanding our lodging and casino operations.”

The restaurant chain, which prides itself on family-style portions and a homegrown atmosphere, has not revealed further details regarding its plans following the bankruptcy filing.