The Italian eatery Buca di Beppo has declared bankruptcy on Monday, citing a downturn in patronage over time. Seeking relief under Chapter 11 in the Northern District of Texas , the chain is looking to revamp its business model and elevate the customer experience through this restructuring process . According to CBS News, the restaurant saw a slump in demand during the pandemic from which it hasn't bounced back.
For the first five months of 2024, Buca di Beppo's revenue dipped by 10 percent compared to the previous year, totaling $74.8 million. Burger chain considers bankruptcy - just a year after closing 14 restaurants American states ranked for filthiest restaurants – mapped The company is also grappling with debts amounting to roughly $10 million, including about $1.
36 million tied up in unredeemed gift cards. President Rich Saultz expressed optimism despite the challenges, stating: "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.
By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future." He added: "Buca di Beppo has been a beloved gathering place for celebrations and memorable meals for many years, and we are enthusiastic about entering this next phase of our brand's story." Amidst the financial restructuring, 44 Buca di Beppo locations will undergo restructuring, and there are plans to .