ITIALIAN restaurant Bucca Di Beppo has filed for Chapter 11 bankruptcy.
This comes just days after closing 13 underperforming locations.
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The bankruptcy petition was submitted just before midnight on August 4, 2024, revealing the company’s dire financial situation.
According to court documents, the Orlando-based Italian restaurant chain’s asset range is alarmingly low.
It is estimated to be between $0 and $50,000, while its debts span from $15 million to $50 million owed to at least 30 creditors, according to local outlet WGNTV.
The filing comes in the wake of the company’s decision to shut down 13 locations that had been struggling to attract customers.
Buca Di Beppo currently operates approximately 44 locations across 14 states, as well as two international outlets.
The recent closures suggest a significant shift in the company’s operational strategy as it grapples with a challenging business environment.
The court documents highlight several factors contributing to Buca Di Beppo’s financial woes.
A notable decline in sales has been compounded by rising food and labor costs, which have placed additional strain on the company’s finances.
Ongoing staffing challenges and shifts in customer preferences have added to the restaurant’s difficulties, making it increasingly hard to maintain profitability.
Despite the recent closures, the court documents do not indicate that additional locations will follow suit as a direct result of the bankruptcy filing.
For now, the remaining restaurants continue to operate, although their future may remain uncertain as Buca Di Beppo navigates the complexities of bankruptcy proceedings.
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