(Bloomberg) -- Italian restaurant chain Buca di Beppo filed for bankruptcy with plans to reorganize by canceling leases on at least a dozen 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 US 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 fish taco chain Rubio’s Coastal Grill, 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 currently operates 44 restaurants in 14 states, after it shut down a dozen locations. The closed sites include restaurants in eight states, such as Utah, New York and Texas. The highest concentration of restaurants are in Southern California.
The case is BUCA Texas Restaurants, L.P., 24-80058, US Bankruptcy Court, Northern District of Texas (Dallas)
--With assistance from Jonathan Randles.
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