Buca di Beppo filed for Chapter 11 protection in a Texas bankruptcy court on Monday, citing significant debt and recent closures. The Italian restaurant chain reported liabilities between $10 million and $50 million for Buca Texas Restaurants LP and its 10 affiliates. The company is seeking joint administration for all cases under the Buca Texas Restaurants case.
Challenges and Future Plans
Rich Saultz, Buca di Beppo’s President, acknowledged the severe challenges the restaurant industry faces and expressed that bankruptcy is the best step for the brand’s future. He emphasized that restructuring with lender support would pave the way for a stronger future. The company aims to restructure 44 core locations and open a new one, ensuring that operations, gift cards, reservations, and promotional services remain unaffected.
Company’s History and Statements
Founded in Minneapolis in 1993, Buca di Beppo now faces the need for a significant overhaul. William Snyder, the Chief Restructuring Officer, stated that the goal is to move through the bankruptcy process swiftly to emerge as a stronger organization. The plan aims to enable continued service to Buca’s patrons and communities for many years.
Industry Context
Buca di Beppo is not alone in its struggles. The restaurant industry has seen a series of bankruptcy filings as it tries to recover from the impacts of COVID-19. For instance, One Table Restaurant Brands LLC, operating Tender Greens and Tocaya, filed for bankruptcy in Delaware last month, citing the pandemic’s catastrophic impact. Similarly, Rubio’s Coastal Grill filed for its second Chapter 11 bankruptcy in four years in June, with liabilities ranging between $100 million and $500 million.
Legal and Financial Representation
Buca di Beppo is represented by Amber M. Carson, Jason S. Brookner, Michael W. Bishop, and Emily F. Shanks of Gray Reed & McGraw LLP. Financial advice is provided by CR3 Partners LLC, while Stout Capital LLC acts as the investment banker.
Case Information
The case is titled In re: Buca Texas Restaurants Inc., case number 24-80058, filed in the U.S. Bankruptcy Court for the Northern District of Texas.
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