Current posture

What matters now

BUCA Texas Restaurants is now in Chapter 7, following a Chapter 11 sale of the operating business and conversion of the cases on February 5, 2025. The debtor is therefore no longer pursuing a standalone reorganization: the restaurant platform passed to Main Street Capital through the sale process, Chapter 11 financing authority ended upon conversion, and the remaining case is an estate-administration and liquidation proceeding. BUCA and nine affiliates began Chapter 11 on August 4, 2024, with the Texas entity commencing its case through a voluntary petition Dkt. 1. The filing followed a sustained deterioration in restaurant performance: sales had fallen approximately 14% from early 2021 and another 5% in 2024, while January-through-May 2024 revenue declined to $74.8 million from $83.5 million a year earlier. Rising food, labor and borrowing costs compounded that pressure. BUCA closed 18 underperforming restaurants during 2024, including 12 in July, but entered court with only about $250,000 of cash and approximately $39.0 million owed to Main Street under a term loan that had matured in 2023. After repeated defaults and amendments, Main Street exercised remedies…

Updated Jul 27, 2026