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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowItalian restaurant chain Buca di Beppo filed for Chapter 11 bankruptcy on Monday, days after closing 13 underperforming eateries nationally, including one of its three local locations.
The Buca di Beppo at 6045 E. 86th St. near Castleton Square Mall was among the restaurants that closed in 11 states, according to court papers.
Buca continues to operate 44 restaurants in 14 states, including its downtown Indianapolis restaurant at 35 N. Illinois St., and its restaurant at 659 U.S. 31 N. in Greenwood
The Castleton location opened in 1999, one year after Buca entered the Indianapolis market with its downtown eatery.
The Orlando, Florida-based chain said it plans to reorganize by canceling leases on the locations the company has closed.
The company blamed its troubles on lower sales, rising costs and the difficulty of hiring, according to court papers filed Monday in U.S. Bankruptcy Court in Dallas. Buca said it owed creditors as much as $50 million in its Chapter 11 petition.
The same problems were cited by several dining chains that sought bankruptcy protection this year, including Red Lobster and casual Mexican restaurant chain Tijuana Flats.
Buca is scheduled to be in court on Wednesday, seeking approval to keep paying wages and other ordinary business costs while it reorganizes. The restaurant chain said it has more than 3,000 part-time employees and 266 full-time employees.
The company has also asked permission to cancel contracts it says it can no longer afford. Restaurant chains typically use bankruptcy to get rid of unprofitable leases as they slim down their footprints.
Buca was founded in 1993 in Minneapolis and grew to more than 100 locations at its peak. The company went public in 1999 when it hit 20 locations, but delisted after its CEO and two other top executives were charged with fraud in 2006.
The company was acquired by Planet Hollywood International Inc. for $28.5 million in 2008.
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Buca’s To-Go options were a life saver a couple of times when we had surprise company…. but the operation seemed dated and had run its course. I do like the Italian dinner music they play in the background…that’s Amore’.
A lot of companies are struggling lately. I was always baffled by the portion sizing at Buca-di-beppo.
Tired concepts are running their course…
Bidenomics and its runaway inflation kills another restaurant.
The numerous sketchy Ghost Kitchens they ran out of the Castleton location couldn’t even save them…
I remember going opening day to Buca when the downtown location opened as my grandfather got a VIP invite. The portions were huge. I remember bringing a meatball home that even my dog wouldn’t finish in one sitting.
But I have no idea how a casual dining restaurant like Buca survives in a downtown market. Downtown eateries either concentrate on being affordable and churning customers out quickly, or high price points with higher margins like steakhouses. Not a lot of room for those in between customers.
Not surprising. #RIP
The one in Castleton was nearly empty most nights. Was a fun place to visit but only good, really, for large groups and special occasions. Lost of food and a price to match.
I liked the downtown one before they renovated it with all the different themed rooms.