Italian restaurant chain files disclosure statement detailing emergence strategy centered on fast-casual expansion and asset sales
Bertucci's Restaurants LLC has filed a comprehensive disclosure statement with the U.S. Bankruptcy Court for the Middle District of Florida outlining its proposed reorganization plan, which would allow the Italian restaurant chain to emerge from Chapter 11 protection with a dramatically restructured business model focused on fast-casual dining expansion.
The 28-page disclosure statement, filed August 15, 2025, provides creditors with detailed information about the company's proposed six-class reorganization plan and initiates the formal voting process for stakeholders in the four-month-old bankruptcy case. The plan offers a stark contrast in recovery prospects between secured and unsecured creditors, with the latter group facing minimal distributions despite claims totaling approximately $2.5 million.
Reorganization Plan Structure and Creditor Treatment
Under the proposed plan, Bertucci's largest creditor, PHL Holdings LLC, which holds a $23.264 million secured claim against substantially all company assets, would retain its lien and receive monthly interest payments over a 60-month term. The plan maintains PHL's security position while allowing the company to continue operations and service the debt through operational cash flow.
A smaller equipment financing claim held by Ameris Bank d/b/a Balboa Capital Corporation, totaling $69,664, would be satisfied through 53 monthly payments of $1,306.37 beginning the month after the plan's effective date.
The plan's treatment of general unsecured creditors represents the most challenging aspect of the reorganization. These creditors, whose claims are estimated at approximately $2.5 million, would receive pro rata distributions exclusively from proceeds of selling a liquor license in Mount Laurel, New Jersey, with total distributions capped at $200,000. The disclosure statement notes the license is currently listed for sale.
"The Debtor believes the Plan provides the best means currently available for its emergence from Chapter 11 and the best recoveries possible for Holders of claims and interests," attorneys R. Scott Shuker and Lauren L. Stricker of Shuker & Dorris, P.A. stated in the filing.
Operational Transformation During Bankruptcy
Since filing for Chapter 11 protection on April 24, 2025, Bertucci's has implemented significant operational changes designed to return the company to profitability. The company has closed seven underperforming locations, reducing its footprint to 13 traditional restaurants and one fast-casual "Bertucci's Pronto" location across five states.
The disclosure statement reveals that the company has successfully renegotiated lease agreements with most landlords and revised contract terms with multiple vendors while bringing in its former brand president to oversee the turnaround effort. These changes have resulted in reduced monthly lease payments and operational expenses.
The reorganization plan is "premised on the continued operations of Reorganized Debtor based on shedding several locations which drained cash flow and, thus, the remaining locations will produce sufficient cash flow to support operations and make all Plan Payments," according to the filing.
Financial Projections and Feasibility
Bertucci's has provided five-year financial projections showing expected revenue growth from $30.1 million in 2025 to $33.9 million by 2029, assuming continued operation of the remaining 13 traditional locations alongside expansion of the Pronto concept. The projections forecast improving operational margins, with REBITDA growing from 5.8% in 2025 to 9.0% by 2029.
The company's liquidation analysis, also filed with the disclosure statement, demonstrates that unsecured creditors would receive nothing in a Chapter 7 liquidation scenario, as the estimated $1.8 million in liquidation proceeds would be insufficient to cover the $24.6 million in secured debt and priority claims ahead of general unsecured creditors.
Strategic Pivot to Fast-Casual Model
Central to the reorganization strategy is expansion of the Bertucci's Pronto concept, which the company developed to capture consumers increasingly gravitating toward fast-casual options over traditional sit-down restaurants. The first Pronto location opened earlier this year in Boston, Massachusetts.
The disclosure statement positions this strategic pivot within the broader casual dining industry transformation, noting that established brands including Red Lobster, TGI Fridays, Tijuana Flats, Hooters, and On the Border have also sought bankruptcy protection amid "declining consumer demand, shifting dining habits, and increased competition from delivery-only 'ghost kitchens' and fast-casual alternatives."
Voting Process and Confirmation Timeline
The disclosure statement identifies five impaired classes of claims entitled to vote on the reorganization plan. Ballots will be mailed to creditors following court approval of the disclosure statement, with voting results to be presented at a confirmation hearing scheduled by the bankruptcy court.
The company has reserved the right to seek "cramdown" confirmation if not all impaired classes vote in favor of the plan. Under this mechanism, the bankruptcy court can confirm a plan over creditor objections provided it meets specific fairness and feasibility standards.
Administrative expenses are estimated at approximately $75,000, while disputed priority tax claims total approximately $1 million. The plan provides for full payment of administrative and priority claims through operational revenues and available cash.
Management Continuity and Future Operations
The reorganized company will continue under existing management, with current officers, managers, and directors maintaining operational control. Existing equity interests will carry forward into the reorganized entity in their current proportions, though no distributions to equity holders will occur until creditor obligations under the plan are satisfied.
Bertucci's corporate headquarters will remain in Orlando, Florida, where the company maintains leased office space. The reorganized entity plans to invest in brand marketing and facility improvements while developing additional Pronto locations to leverage the Bertucci's brand recognition in the growing fast-casual segment.
The plan's effective date would occur 15 days after entry of a confirmation order, assuming no stay is in place. Objections to the plan must be filed at least seven days before the confirmation hearing.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 28 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.