By Dietrich Knauth
(Reuters) - Italian-American restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy protection on Monday, saying it intends to keep its current locations open despite a significant drop in sales, rising food and labor costs, and staffing challenges.
Buca di Beppo is known for its large portions, family-style dining and "eclectic decor," which includes a "Pope Room" decorated with statues, photographs and other artistic representations of the pope, according to its court filings.
It joins other restaurant chains that have cited rising costs as reasons for filing for bankruptcy in 2024, including Red Lobster and Rubio's Coastal Grill.
Buca di Beppo's president, Rich Saultz, said the company's lenders support a bankruptcy restructuring and that day-to-day operations will continue as normal.
"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," Saultz said in a statement.
The company has $10 million to $50 million in assets and $50 million to $100 million in liabilities, according to its Chapter 11 petition filed in U.S. Bankruptcy Court in Dallas.
The Orlando, Florida-based company currently has 44 locations across 14 states and 3,340 employees. It said it is also opening one new location. It closed 12 restaurants before filing for bankruptcy and will seek court approval to terminate leases at those locations.