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(MENAFN) American Italian restaurant chain Buca di Beppo has filed for bankruptcy, presenting a restructuring plan that involves canceling leases on at least a dozen of its locations. The company, which submitted its filing to the US bankruptcy court in Dallas, attributed its financial struggles to a combination of declining sales, increasing operational expenses, and challenges in recruiting skilled workers. Buca di Beppo's total debts are reported to be around USD50 million.
The chain's bankruptcy follows a trend seen among several US restaurant chains this year, including Rabio's Coastal Grill, Red Lobster, and Tijuana Flats, all of which have faced similar issues. The broader restaurant industry has been grappling with similar challenges, including financial strain from reduced revenues and escalating costs. As part of its restructuring, Buca di Beppo plans to continue paying wages and other essential operating costs while seeking approval from the court to execute its plan.
Currently operating 44 restaurants across 14 states, Buca di Beppo has already closed 10 branches. The bankruptcy filing will enable the chain to focus on shedding unprofitable leases and adjusting its business model to stabilize its financial position. With over 3,000 part-time and 266 full-time employees, the company aims to navigate the restructuring process while maintaining its workforce and operational commitments.
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