WASHINGTON (dpa-AFX) - Italian food chain Buca di Beppo filed for Chapter 11 bankruptcy protection, citing 'a significant drop in sales, rising food and labor costs, staffing challenges and changes in consumer preferences.'
According to the petition filed in Dallas, Buca di Beppo has $10 million to $50 million in assets and $50 million to $100 million in liabilities.
'This is a strategic step towards a strong future for Buca di Beppo,' Rich Saultz, the company's president, said.
'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'.
Notably, the chain had shut down 12 restaurants last month, and is planning to restructure 44 locations across 14 states.
The Orlando, Florida-based company's revenue declined by 10 percent for the first five months of 2024, to $74.8 million compared to last year, as per CBS News.
Prior to Buca di Beppo, restaurant chains like Red Lobster, Sticky's Finger Joint, and Tijuana Flats have also filed for bankruptcy protection in 2024.
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