Italian Restaurant Chain Files For Chapter 11 Bankruptcy, Putting 20 Locations Nationwide At Risk

Popular Italian Brand, Bravo Brio Restaurants, LLC, filed for Chapter 11 Bankruptcy for the second time in five years, joining the list of other Italian establishments that have faced legal challenges more recently.

The Orlando-based restaurant group, which opened upscale chain eateries like Bravo! Italian Kitchen and Brio Italian Grille filed the legal document at the United States Bankruptcy Court for the Middle District of Florida on Monday, according to a copy of the notice.

When did Bravo Brio Restaurants file for bankruptcy?

The court filing stated that Bravo Brio Restaurants had between 200 and 999 creditors, along with assets and liabilities between $50 and $100 million, and owed $1.9 million to Sysco, a restaurant food distributor. 

Bravo Brio Restaurants first filed for bankruptcy protection in 2020 and was later bought by Earl Enterprises. The latest action now jeopardizes the 31 Brio and 25 Bravo locations. The company plans to shutter underperforming locations as it aims to get back on track financially. The brand has a total of 59 locations nationwide, Yahoo! Finance and WNEP reported.

What is Bravo Brio saying?

The company told Restaurant Business Online that inflation, rising costs, and a decline in consumers casually dining out at restaurants led to the second bankruptcy filing.

“Outgoing inflationary pressure, rising food and labor costs and a softening in discretionary consumer spending have contributed to underperformance, especially in shopping centers with high vacancies and declining foot traffic,” the company said in a statement to the outlet, per WNEP. “These pressures have proved insurmountable to numerous other legacy casual-dining restaurant brands, many of whom have also turned to bankruptcy as a tool for restructuring.” 

Bravo Brio is not the only restaurant company that filed for bankruptcy and eventually shut down locations. In April, Hooters filed for Chapter 11 protection, also citing financial matters as the central factor. At first, the company said locations would remain open, but in June, more than 30 locations had abruptly closed, Blavity reported.