Buca di Beppo Declares Bankruptcy but Determined to Dish Out Delicious Italian Fare Despite Industry Problems

Clear Facts

• The Italian restaurant chain Buca di Beppo has filed for Chapter 11 bankruptcy due to increasing food and labor costs as well as staffing problems.
• The company plans to reorganize 44 of its “core” locations and keep its services running “as usual” during the bankruptcy process.
• The restaurant industry has seen a surge in bankruptcy filings recently, with Tijuana Flats, Red Lobster, and Rubio’s Coastal Grill being some of the most recent.

Amid rising food and labor costs and staffing difficulties, the Italian restaurant chain Buca di Beppo has filed for Chapter 11 bankruptcy. The company’s liabilities are estimated to be between $50 million to $100 million while its assets range from $10 million to $50 million, according to the Chapter 11 petition submitted at the U. S. Bankruptcy Court in Dallas.

Despite the bankruptcy filing, Buca di Beppo is determined to continue its operations. The company plans to restructure 44 “core” locations and is also considering the potential for opening a new restaurant. Previously, the company announced the closure of 12 of its locations.

“This is a strategic move towards a stronger future for Buca di Beppo,” stated Rich Saultz, the president of the chain. He added, “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 towards a revitalized future.”

Buca di Beppo customers can expect to continue enjoying the family-style Italian meals the chain is known for across its existing locations during the Chapter 11 proceedings. The company has confirmed its commitment to honoring all gift cards, reservations, and promotional services.

Chief Restructuring Officer William Snyder clarified, “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 designed for the future.”

The bankruptcy case of Buca di Beppo will be overseen by the U. S. Bankruptcy Court for the Northern District of Texas alongside several other affiliated cases. This bankruptcy is another indication of the challenging climate in the restaurant industry. Other chains such as Tijuana Flats, Red Lobster, and Rubio’s Coastal Grill have also filed for Chapter 11 bankruptcy, each having closed multiple locations before filing.

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