An unexpected Italian restaurant now files for bankruptcy after news broke that the chain had begun to close several locations.
On August 4, Buca di Beppo on filed for Chapter 11 bankruptcy protection seeking to reorganize with the support of its lenders.
The fast-casual restaurant chain Buca di Beppo, based in Orlando, Florida, has filed for bankruptcy.
The company’s largest equity holder, Buca Investments, and nine affiliated entities have filed petitions in the U.S. Bankruptcy Court for the Northern District of Texas in Dallas, listing liabilities between $10 million and $50 million.
The debtors have cited several factors contributing to the bankruptcy filing, including a significant drop in sales, rising food and labor costs, ongoing staffing challenges, and changes in customer preferences.
Prior to the bankruptcy, Buca di Beppo had recently closed 13 underperforming locations, including restaurants in Sacramento and Salt Lake City.
Currently, the company operates 44 core locations across 14 states, with two international locations, and is in the process of opening one new location.
The debtors will seek joint administration of their bankruptcy cases through the court proceedings.
Buca di Beppo has filed for bankruptcy due to a combination of financial pressures, while continuing to maintain a reduced number of operational locations.
“This is a strategic step towards a strong future for Buca di Beppo,” company president Rich Saultz said in the statement.
“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.”
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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