Buca di Beppo was established in 1993 in Minneapolis and expanded to a peak of 95 restaurants in 2013 before shrinking to 44 company-run locations by the petition date. The First Day Declaration states that Planet Hollywood acquired the chain for $28.5 million in 2008 and that Planet Hollywood affiliates continued providing management services under a 2015 management services agreement as the debtors prepared for bankruptcy.
Revenue for the first five months of 2024 fell to $74.8 million from $83.5 million in the same period of 2023, a 10% decline, and restaurant-level EBITDA dropped 18% to $3.1 million. Expert analysis of Technomic data put cumulative revenue down roughly 9% from 2021 to 2023, followed by a further 5% decline in 2024.
Buca closed 13 underperforming restaurants the week before filing. Between 2020 and 2024, the chain closed 30 restaurants in total, shrinking from 74 locations to 44 by the petition date.
The First Day Declaration attributed the filing to declining sales, inflationary pressures on ingredients and labor, and a consumer shift toward value and off-premise dining. Buca employed approximately 3,340 workers, mostly hourly staff, with certain Las Vegas locations operating under union agreements. The declaration says Main Street exercised control remedies before the filing, installed new independent managers, and appointed CR3 Partners' William Snyder as chief restructuring officer effective August 4, 2024.
Main Street Term Loan and Capital Structure
In 2015, Main Street Capital Corporation provided a $47 million term loan to Buca di Beppo. By the petition date, the debtors owed $38,986,453.54 in principal and interest on that facility, and the First Day Declaration says Main Street had also extended $5.05 million of protective advances through a series of 2024 amendments.
Other prepetition obligations included $515,767.66 under an AFCO premium financing agreement and roughly $1.48 million in utility obligations. The debtors listed estimated assets of $10 million to $50 million against liabilities of $50 million to $100 million, entered bankruptcy with about $250,000 in cash, and received and disbursed funds through a centralized cash management system built on 10 active bank accounts with average monthly gross receipts near $15.6 million.
DIP Financing and Credit-Bid Sale to Main Street
Buca secured approval for a $36.3 million DIP facility from Main Street Capital, consisting of $12.1 million in new money (later increased to $13.1 million) and $24.2 million in rolled-up prepetition debt. The facility carried a 15% per annum interest rate (17% upon default), a 3% commitment fee, and an initial interim draw of $10.85 million, with maturity set for November 30, 2024. It required bidding procedures within 8 days of the petition date and sale approval within 75 days.
| Component | Amount |
|---|
| New Money | $12.1 million (later increased to $13.1 million) |
| Roll-Up of Prepetition Debt | $24.2 million |
| Total DIP Facility | $36.3 million |
| Interest Rate | 15% per annum (17% upon default) |
| Commitment Fee | 3% |
| Interim Draw | $10.85 million |
| Maturity | November 30, 2024 |
The debtors filed their sale motion on August 12, 2024, and the court approved bidding procedures on August 26, designating Main Street as stalking horse. By the October 2 bid deadline, no qualified alternative bidders had come forward, and Main Street won the October 7 auction with its credit bid.
The Sale Order approved the transaction on November 4, 2024, finding that the purchase agreement represented the highest and best offer and that the process complied in all material respects with the bidding procedures. As stalking horse, Main Street could credit bid up to the full value of its secured claims—approximately $75 million including prepetition debt, protective advances, and DIP financing—applying secured debt against the purchase price rather than contributing equivalent cash. The sale preserved roughly 3,000 jobs and about 41 restaurants under affiliate BDB Intermediate, LLC.
The debtors sought authority to pay approximately $3.7 million in prepetition wages, vacation, and healthcare obligations for their roughly 3,340 employees, and to continue honoring gift cards, reservations, and promotional services during the case.
A PACA/PASA order authorized up to $500,000 in prepetition claims to suppliers covered under the Perishable Agricultural Commodities Act or Packers and Stockyards Act. The debtors also moved to reject leases for previously closed locations, estimated to save approximately $187,012.98 per month in rent.
The debtors maintained 13 insurance policies—covering general liability, property, workers' compensation, and cyber risk—at annual premiums of about $3.47 million, financed partly through AFCO Premium Financing, and faced roughly $1.02 million in sales, use, and franchise taxes. They sought authority to provide adequate assurance deposits of about $1.1 million to utility providers.
Professional retentions. The debtors retained Gray Reed as counsel under Jason Brookner, William Snyder and CR3 Partners as chief restructuring officer, Stout Capital as investment banker, Stretto, Inc. as claims and noticing agent, and Gordon Brothers Realty Services as real estate consultant. Stout marketed the company, though no competing bids materialized. The official creditors' committee retained Kelley Drye & Warren and Oxford Restructuring Advisors.
The sale drew creditor opposition. On October 15, 2024, food-service suppliers Sysco Corporation and Edward DON & Company objected to the sale, arguing the proposed closing would leave the estates administratively insolvent and unable to satisfy 503(b)(9) and other administrative claims. The Official Committee of Unsecured Creditors, appointed August 15, 2024, filed a separate objection on October 29, arguing Main Street was attempting to credit bid assets beyond its collateral package while leaving no cash path for unsecured recoveries. The court later granted the committee standing to pursue estate claims, but the case converted before those claims were litigated.
Despite completing the sale, the estates proved administratively insolvent. The motion to convert said the sale had not generated cash sufficient to fund a confirmable chapter 11 liquidation, more than $10 million of DIP obligations remained outstanding, and the remaining assets consisted largely of five liquor licenses, cash reserves subject to carve-out restrictions, and litigation claims. The court converted the cases on February 5, 2025, and restaurant operations continued outside the estates under Main Street and Jackmont Hospitality.
New Ownership Under Main Street and Jackmont
Houston-based Main Street Capital Corporation invested over $30 million to acquire Buca di Beppo through the bankruptcy and partnered with Atlanta-based Jackmont Hospitality Inc., a minority-owned hospitality company, to run day-to-day operations under its Atlanta Restaurant Partners division led by CEO Daniel Halpern. The new owners reopened select previously closed locations, including San Diego.
Buca's distress mirrored a broader casual-dining downturn. Restaurant prices rose 44% between 2015 and March 2024, against a 26% increase in grocery prices, and in 2024 casual-dining sales dropped 0.9% while fast-casual chains grew 0.6% and fast-food chains grew 1%. The full-service restaurant segment contracted nearly 18% from 2019 to 2024.
Buca joined a series of casual dining chain bankruptcies in 2024. Red Lobster filed chapter 11 and closed more than 120 locations, and TGI Friday's, One Table Restaurant Brands, Rubio's, and Tijuana Flats also sought bankruptcy protection. Non-bankrupt chains contracted as well, with Denny's closing 73 locations, Frisch's Big Boy 57, Applebee's 35, and Chili's 21.
The case moved from filing on August 5, 2024 to sale approval on November 4, 2024—about 90 days—and converted to chapter 7 three months later.
| Date | Event |
|---|
| 2008 | Planet Hollywood acquires Buca di Beppo for $28.5 million |
| 2015 | Main Street Capital provides $47 million term loan |
| July 2024 | Main Street appoints new managers and CRO |
| August 1, 2024 | 13 underperforming restaurants closed |
| August 5, 2024 | chapter 11 petitions filed |
| August 15, 2024 | Official Committee of Unsecured Creditors appointed |
| August 26, 2024 | Bidding procedures approved; MSCC designated stalking horse |
| October 2, 2024 | Bid deadline |
| October 7, 2024 | Auction (no qualified alternative bids) |
| October 15, 2024 | Sysco/Edward DON object to sale |
| October 29, 2024 | UCC objection and standing motion filed |
| November 4, 2024 | Sale to Main Street Capital approved ($27 million) |
| November 19, 2024 | UCC standing authority granted |
| January 3, 2025 | Motion to convert to chapter 7 filed |
| February 5, 2025 | Order granting conversion to chapter 7 |
| March 14, 2025 | chapter 7 341(a) meeting of creditors |
Why did Buca di Beppo file for bankruptcy?
The First Day Declaration cites declining sales, higher food and labor costs, increased debt-service pressure, and changing consumer demand for off-premise and value-oriented dining. With nearly $39 million owed to its primary lender and about $250,000 of cash, the company filed for chapter 11 protection.
Who bought Buca di Beppo out of bankruptcy?
Main Street Capital Corporation, through its affiliate BDB Intermediate, LLC, acquired substantially all of Buca di Beppo's assets through a $27 million credit bid. Main Street had also been the company's primary lender and DIP lender.
Who is the claims agent for Buca di Beppo?
Stretto, Inc. served as the claims and noticing agent in the chapter 11 cases, as reflected in the claims-agent application.
Why were there no competing bidders?
Despite a formal auction process, no qualified alternative bidders came forward. Main Street's position as both prepetition lender and DIP lender let it pursue the assets through a credit bid.
Why did the case convert to chapter 7?
The conversion motion said the estates were administratively insolvent and lacked cash to fund a confirmable chapter 11 wind-down after the sale. Conversion put a chapter 7 trustee in place to administer remaining assets, including liquor licenses and litigation claims.
What happened to unsecured creditors?
Unsecured creditors faced a sale structure that produced no cash purchase price for general estate value. The committee obtained standing to pursue estate claims, but the cases later converted to chapter 7.
For more chapter 11 case coverage, visit the ElevenFlo bankruptcy blog.
