In August 2024, the popular Italian chain Buca di Beppo filed for Chapter 11 bankruptcy, a legal step that lets businesses reorganize without shutting down. Buca Texas Restaurants, L.P. filed the case in the U.S. Bankruptcy Court for the Northern District of Texas. As part of the process, Buca closed 13 underperforming locations, keeping 44 restaurants open across the country.

Like many in the restaurant industry, Buca faced post-pandemic struggles, including rising costs, labor shortages, and fewer dine-in customers. Its sales dropped, debts increased, and suppliers were not getting paid on time. These challenges pushed the brand to seek help through Chapter 11.

With court approval and a financial boost from Main Street Capital, Buca is now working on a fresh start. The company remains open, honoring gift cards, and continues to serve its classic Italian dishes.

“Eat big or go home” — Buca’s bold dining spirit still lives on. 🍝🔥

Chapter 11 is a part of U.S. bankruptcy law. It lets a company reorganize its debt while continuing to run. Instead of closing, the company makes a plan to pay creditors over time. It’s like hitting a “pause” button to fix finances while still operating.

• Filing Date: August 5, 2024, in the Northern District of Texas.

• Who Filed: Buca Texas Restaurants, L.P., operator of the chain.
• Court Case Number: 24‑80058 (SGJ).
• Reason: Sales dropped ~10–14%, debt too high, rising costs, staffing difficulties, stiff competition.
• Debts & Assets: Assets: $10–50 million; Liabilities: $50–100 million.
• Number of Creditors: Between 30 and nearly 1,000; typical figures range from 200 to 999.

• In July 2024, Buca closed 13 underperforming U.S. locations, about 20% of its stores.
• Total remaining U.S. outlets: 44, plus two international.
• Sales fell from ~$83 M to ~$74 M in the first five months of 2024 (≈10% decline).
• Rising food prices, wages, labor shortages, and consumer preference shifts made it hard to keep profits.

In July–August 2024, Buca di Beppo shut down 13–18 underperforming restaurants across 14 states, part of its strategy to cut costs and right-size its operating footprint:

🛑 Closed Buca di Beppo Locations – Chapter 11 (2024)

• Remaining Restaurants: Buca di Beppo continues to operate 44 core U.S. locations under Chapter 11 protection.
• New Opening: One new restaurant is reportedly being planned or in development.
• Operations: Gift cards, reservations, and ongoing promotions remain valid and honored.
• Ownership Transition: In November 2024, Main Street Capital won the stalking‑horse bid at ~$27 M and now leads the restructuring.
• Restructuring Plan: The focus is on leaner operating costs, optimizing diet to 44 strong locations, improving cash flow, and satisfying creditors.

✅ Summary

i. 📉 More Debt Than Cash

At the time of filing, Buca di Beppo had:

• $10–50 million in assets (what they owned)
  • $50–100 million in liabilities (what they owed)
    👉 They were deep in debt and needed a financial rescue.

ii. 🏦 Main Lender: Main Street Capital

• Gave Buca a $47 million loan back in 2015
  • By 2024, Buca still owed about $39 million
  • Main Street became both the lender and future owner!

iii. 🧾 Late Payments to Suppliers

• Buca paid most vendors 43 days late
  • Industry average is just 19 days
  • Result? Frustrated suppliers and strained relationships

iv. 💸 Emergency Funds Through DIP Financing

• DIP = Debtor-in-Possessionfinancing (a loan approved during bankruptcy)
  • Court approved $36.3 million from Main Street Capital:
    • 🔹 $12.1M in new cash to keep operations running
    • 🔹 $24.2M to roll over part of existing debt
  • Helped Buca stay open, pay employees, and restock food

(What Happened Right After Filing)

i. 🏛️ What are “first-day motions”?

• These are urgent requests a company makes to the court right after filing for bankruptcy.
  • They help keep the business running smoothly from day one.

ii. 🧩 Buca’s First Moves:

• Asked to combine court cases for different restaurants (to save time and money).
  • Requested permission to pay employees and keep using customer systems.
  • Planned to end leases on closed locations to stop wasting money on rent.

iii. 💰 Fast Track to Sale:

• Main Street Capital agreed to offer funding (DIP loan), but with a condition:
  • Buca had to start the sale process in just 8 days.
  • The company needed court approval of the sale within 75 days.

i. 🐎 What’s a “stalking-horse bid”?

• It’s a first offer from a serious buyer that sets a starting price.
  • It encourages other buyers to bid higher, like an auction starter.

ii. 🏆 Main Street Capital Steps In:

• They offered $27 million to buy Buca and became the “stalking-horse bidder.”
  • No one else placed a better bid, so they won the deal.

iii. 📝 Sale Approved:

• In November 2024, the court gave the green light.
  • Main Street Capital officially became the new owner.

i. 🏪 Are Buca restaurants still open?

• Yes! The remaining 44 locations stayed open during and after the bankruptcy process.
  • They’re still serving spaghetti, meatballs, and all your Italian favorites!

ii. 🎟️ What about gift cards and reservations?

• Good news: Gift cards still work, and you can book your table like normal.

iii. 💬 What did the company say?

• Buca’s CEO called it a “smart step” to keep the brand strong.
  • A court-appointed restructuring expert said:

“Customers shouldn’t notice a difference at all.”

i. 📈 Rising Costs Everywhere

• Food prices went up a lot after the pandemic.
  • Wages and labor costs increased, too, making running restaurants expensive.

ii. 🧍‍♂️ Fewer Customers Coming In

• Many people changed their dining habits.
  • Casual dining spots like Buca saw fewer guests than before.

iii. ⏳ Delayed Payments to Suppliers

• Buca was paying suppliers late, sometimes more than twice the usual time.
  • This caused trust problems and strained supplier relationships.

iv. 📊 Managing Many Creditors

• The company owed money to hundreds of creditors, from banks to vendors.
  • Handling all these debts in bankruptcy was a big challenge.

i. ✂️ Cutting Back on Underperforming Locations

• Closed 13–18 restaurants to save money.
  • Focus is now on 44 restaurants that perform better.

ii. 🔄 Improving Efficiency

• Streamlining suppliers and staff schedules.
  • Adjusting menus to reduce costs without hurting taste.

iii. 🤝 Keeping Customers Happy

• Still honoring gift cards and reservations.
  • Maintaining good service to keep loyal diners coming back.

iv. 💼 New Leadership & Fresh Capital

• Main Street Capital bought the company, bringing new ideas and money.
  • This helps Buca plan for a stronger future.

• ✅ Yes, gift cards are still valid!
  Even though Buca di Beppo filed for Chapter 11 bankruptcy, it is still open and operating.
  The court approved that all gift cards will be accepted at the remaining locations.
  You can use your gift card for dine-in or takeout just like before—no changes for customers.

i. ⏳ Court Approval Completed

• The sale to Main Street Capital was approved in November 2024.
  • This gave Buca a new start with fresh leadership.

ii. 💡 Restructuring Continues

• The company is working to pay back creditors through an approved plan.
  • It’s focusing on cutting costs and improving profits.

iii. 🍽️ Aiming for Growth

• Plans to keep serving customers with the same great Italian food.
  • Possibly updating menus, marketing, and customer experience to attract more diners.

• 🛡️ Second Chances Exist
  • Chapter 11 gave Buca time to fix its problems without shutting down.
  • It’s proof that even well-known brands can recover.
• 🍝 For Diners
  • Customers can still enjoy their favorite dishes, and trust gift cards will work.
  • The brand is committed to quality and service despite financial troubles.
• 📈 For the Restaurant Industry
  • Buca’s case shows how casual dining chains face new challenges.
  • It highlights the importance of adapting to changing costs and customer habits.

• 📉 Rising Costs: Ingredients, rent, and labor have all become more expensive since the pandemic.
• 👥 Fewer Customers: Many people now prefer fast casual, takeout, or cooking at home.
• 📊 Debt Trouble: Some restaurants borrowed a lot during COVID and are now struggling to repay.

Buca di Beppo is not alone—other chains like Red Lobster, Boston Market, and Corner Bakery have also faced similar financial issues.
The dining world is changing fast, and only the restaurants that adapt quickly are surviving.

1. What is Chapter 11 bankruptcy?

Answer:
Chapter 11 is a legal process in the U.S. that helps a company fix its finances while still staying open. It allows the company to reorganize its debts, make a plan to pay back creditors over time, and keep running its business.

2. Why did Buca di Beppo file for Chapter 11?

Answer:
Buca di Beppo filed for Chapter 11 because it was losing money, had a lot of debt, and was struggling with rising costs, fewer customers, and labor shortages. Chapter 11 gives the company time and support to make a recovery plan.

3. When did Buca di Beppo file for Chapter 11?

Answer:
Buca di Beppo officially filed for Chapter 11 bankruptcy protection on August 5, 2024.

4. Which locations of Buca di Beppo were closed?

Answer:
In July 2024, Buca closed 13 underperforming restaurants across the U.S. The names of exact locations were not shared publicly, but the total number of restaurants went down to 44 remaining U.S. locations.

5. Can I still eat at Buca di Beppo during Chapter 11?

Answer:
Yes, all open Buca di Beppo restaurants are still running as usual. You can dine in, make reservations, and enjoy your favorite Italian meals like always.

6. Are Buca di Beppo gift cards still valid?

Answer:
Yes, gift cards are still being accepted at all open Buca di Beppo locations, and customers can use them just like before.

7. What happens to employees during the bankruptcy process?

Answer:
Employees are still working, and restaurants are still operating. Chapter 11 helps keep jobs safe while the company reorganizes its business.

8. Who owns Buca di Beppo now?

Answer:
In November 2024, Main Street Capital, a financial investment firm, became the new owner after winning the bid to buy Buca di Beppo during the bankruptcy process.

9. Is Buca di Beppo going out of business?

Answer:
No, Buca di Beppo is not closing down. The company filed for Chapter 11 to reorganize and improve its business. It is still open and plans to stay that way.

10. Will more Buca di Beppo restaurants close soon?

Answer:
As of now, there are no plans for more closures, but Buca may still review some leases or close more stores if needed to stay financially healthy.

11. Why are so many restaurants filing for bankruptcy?

Answer:
Many restaurants like Buca di Beppo are filing for bankruptcy because of high food prices, increased wages, fewer customers, and the long-term effects of the COVID-19 pandemic on the food industry.

12. What is a stalking-horse bid in bankruptcy?

Answer:
A stalking-horse bid is a starting offer made by one buyer to set a price during a sale. In Buca di Beppo’s case, Main Street Capital made this kind of bid for $27 million to buy the company.

Buca di Beppo’s Chapter 11 filing wasn’t the end—it was a strategic reset. Faced with rising costs, a shrinking customer base, and heavy debt, the company chose to reorganize instead of vanish. Backed by court protection and new financing, Buca continued serving guests, keeping its doors open and its signature Italian spirit alive.

Now under the leadership of Main Street Capital, the brand is focused on smarter operations, fewer but stronger locations, and a hopeful comeback. Loyal customers can still enjoy their favorite dishes, gift cards remain valid, and the company is aiming for long-term stability.
In the world of bold flavors and bold moves, Buca di Beppo is proving it’s not just about big plates—it’s about big comebacks. 🍝💥