Italian casual-dining chain Buca di Beppo filed for Chapter 11 bankruptcy Monday in Texas court.
The chain, which last week closed 13 restaurants, said in a press release that it was “restructuring” its remaining 44 locations and opening one new one.
It said it hoped the bankruptcy process would allow it to improve its operations and dining experience. Restaurants will continue to operate as usual.
It reported between $10 million and $50 million in both assets and liabilities. A full declaration had not yet been filed.
“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,” said brand President Rich Saultz. “By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.”
Buca di Beppo was founded in 1993 in Minneapolis as a stereotypical “red sauce joint” decorated with framed family photos and other Italian-themed kitsch. It grew quickly and went public in 1999 but in 2005 was derailed by an SEC investigation into fraud by three executives. Its CEO, CFO and controller later pled guilty to stealing hundreds of thousands of dollars from the company.
Robert Earl’s Planet Hollywood International acquired the chain in 2008 for $28.5 million; it is now owned by Earl's Earl Enterprises.
During the pandemic, many of Buca di Beppo’s outlets became hubs for delivery-only virtual brands from Virtual Dining Concepts, a sister group of Earl Enterprises that owns MrBeast Burger, Pardon My Cheesesteak and other digital concepts.
The Orlando-based chain has been closing restaurants for years since peaking at 95 locations in 2013. Systemwide sales declined 4.7% last year, according to data from Technomic.
It is one of more than a dozen restaurant chains to file for bankruptcy this year, and was the second to do so on Monday, along with World of Beer.
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