The Italian restaurant chain Bertucci’s is set to close more of its locations after once again filing for bankruptcy in an attempt to reduce its financial losses.
Headquartered in Massachusetts, the company, which operates restaurants primarily along the East Coast, is renowned for its brick oven pizza and pasta dishes. Last week, it sought Chapter 11 bankruptcy protection in Florida, marking the third time since 2018 that the chain has undergone the bankruptcy process.
In addition to the bankruptcy filing, Bertucci’s has shuttered seven underperforming restaurants, specifically five in Massachusetts, one in Rhode Island, and another in Maryland. As per court documents, the chain now maintains just 15 locations across six states.
BERTUCCI’S FILES FOR BANKRUPTCY PROTECTION FOR THE THIRD TIME
The bankruptcy filing attributes the chain’s struggles to the “deterioration” of the U.S. economy and diminishing consumer interest in traditional casual dining establishments, contributing to considerable operational losses.
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In the bankruptcy documents, the company noted, “With losses accumulating, inflationary pressures still high, and industry headwinds gusting, the proverbial final straw fell on [Bertucci’s] this year as the world saw food costs soar, consumer spending slow, and an uncertain global economy falling in (and out) of decline.”
The restaurant chain’s assets and liabilities are reported to be in the range of $10 million to $50 million.
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Bertucci’s is optimistic that bankruptcy will provide a necessary “breathing spell” to enable the business to identify future strategies and develop a comprehensive reorganization plan, as outlined in the filing.
Bertucci’s first filed for Chapter 11 protection in April 2018, resulting in the closure of 15 locations. It faced its second bankruptcy filing in December 2022, largely due to the challenges presented by the COVID-19 pandemic, including restaurant closures and rising inflation, which forced the chain to operate from only 23 locations at that time.
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Bertucci’s has not yet responded to requests for comments from Finance Newso Business.
