DALLAS — This article was originally published in the Dallas Business Journal. Read the original article and more business content here.
Italian restaurant chain Buca di Beppo is the latest eatery to file for Chapter 11 bankruptcy protection. It plans to restructure leases at more than 40 locations but has shut down operations at a dozen others.
The Orlando-based company filed its petition in Dallas, citing "a significant drop in sales, rising food and labor costs, staffing challenges and changes in consumer preferences," according to the filing.
Court filings list roughly $10 million to $50 million in assets and about $50 million to $100 million in liabilities, according to the Orlando Business Journal, Reuters and other outlets.
The chain's largest creditor listed was Houston-based wholesale food provider Sysco Corp. (NYSE: SYY) at $6.85 million. Sysco is the third-largest publicly traded company headquartered in the Houston area, based on its 2024 revenue of $76.32 billion.
Buca di Beppo said it plans to use bankruptcy to reject 12 of its 44 locations. According to a report from WJET/WFXP in Pennsylvania, the recently closed locations are:
7111 W. Ray Road, Chandler, Arizona
3612 Tudor Blvd., Austin
38888 Six Mile Road, Livonia, Michigan
615 Flatiron MarketPlace Drive, Broomfield, Colorado
202 W. 300 S., Salt Lake City, Utah
935 E. Fort Union Blvd., Midvale, Utah
10915 Carolina Place Parkway, Pineville, North Carolina
6045 E. 86th St., Indianapolis, Indiana
15350 S. 94th Ave., Orland Park, Illinois
2745 Paper Mill Road, Wyomissing, Pennsylvania
44 Wolf Road, Colonie, New York
2335 Mansell Road, Alpharetta, Georgia
According to its website, the chain has four remaining locations in Texas — three in the Dallas-Fort Worth area and one Houston-area location in Portofino Shopping Center near The Woodlands.
Buca di Beppo was founded in 1993 in a Minneapolis basement by restaurateur Phil Roberts. Planet Hollywood acquired Buca di Bepo in 2008 for $28.5 million. The company has been been owned by Earl Enterprises since 2008.
Buca di Beppo's original Minneapolis location sold in 2022 for $1.32 million, though it is still open with a lease that runs through May 2026.
The company said in a statement that it would ensure that the restaurants operate as usual, and all gift cards, reservations and promotional services currently remain active and redeemable.
"This is a strategic step towards a strong future for Buca di Beppo," Rich Saultz, president of Earl Enterprises, said in a press release. "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. 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."
Gray Reed & McGraw is serving as legal adviser, CR3 Partners is serving as financial adviser and Stout Capital is serving as an investment banker.
The Buca di Beppo bankruptcy comes on the heels of Red Lobster filing for bankruptcy protection in May. The company closed several restaurants around the country, including two in Dallas, but is now close to being purchased.
