Aug. 7 (UPI) — Italian family-style restaurant chain Buca di Beppo is filing for bankruptcy after closing locations in Utah and other states.
Buca di Beppo announced Monday it would voluntarily file for reorganization under Chapter 11 in U.S. Bankruptcy Court for the Northern District of Texas.
“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,” Rich Saultz, the Orlando, Fla.-based chain’s president said in a statement.
Buca di Beppo said it would keep 44 of its remaining locations open in 14 states as it restructures, and announced plans Monday to open one new restaurant.
There was no indication the chain planned to reopened Buca di Beppo locations already closed, including those in Salt Lake City and Midvale. Other locations the company closed include those in Sacramento; Livonia and Utica, Michigan; Springs Township, Pennsylvania; and Colonie, New York.
“We believe this path will best allow us to continue to serve Buca’s patrons and communities for many years to come. We are open for business in 44 locations and we expect day-to-day operations to continue uninterrupted,” William Snyder, chief restructuring officer of Buca C LLC, said in a statement.
“We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future.”
Buca di Beppo, which opened in 1993 as a casual Italian “red sauce joint” in Minneapolis, promised its customers Monday that all reservations and gift cards will be honored at its 44 locations.
The restaurant chain’s history has been rocky since going public in 1999. It was investigated by the Securities and Exchange Commission for fraud in 2005. Its chief executive officer, chief financial officer and controller pled guilty to stealing hundreds of thousands of dollars from the company.
That same year, the restaurant chain — which numbered 96 locations — was ordered to remove all statuary busts of the pope “due to respect” after the death of Pope John Paul II.
Robert Earl’s Planet Hollywood acquired the chain in 2008 for $28.5 million, which later became Earl Enterprises.
According to court papers obtained by USA Today, the company blames its current financial problems on hiring difficulties and rising costs. The restaurant chain named 30 creditors that are owed close to $50 million.
“Buca di Beppo has been a beloved gathering place for celebrations and memorable meals for many years,” Saultz said, “and we are enthusiastic about entering this next phase of our brand’s story.”
