In a telling sign of the ongoing struggles facing traditional casual dining chains, Bertucci's Restaurants, LLC has filed for Chapter 11 bankruptcy protection for the third time in seven years. The Italian-themed restaurant chain, known for its brick oven pizzas, filed its latest petition on April 24, 2025, in the U.S. Bankruptcy Court for the Middle District of Florida (Case No. 6:25-bk-02401-GER), revealing a dramatically reduced footprint and continued financial difficulties despite previous reorganization attempts.
The company's recurring trips through bankruptcy court offer a stark illustration of the challenges facing legacy restaurant brands as they navigate changing consumer preferences, economic pressures, and the lasting impact of the COVID-19 pandemic. Court documents reveal a business that has contracted significantly over time, from operating 59 locations in 2018 to just 15 restaurants today.
The Original Bankruptcy (2018): A First Attempt at Restructuring
Bertucci's first modern bankruptcy journey began on April 15, 2018, when Bertucci's Holdings, Inc. and its affiliated entities filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware (Case No. 18-10894-MFW), represented by Landis Rath & Cobb LLP.
In the First Day Declaration filed by then-CFO Brian Connell, the company disclosed it operated 59 full-service Italian restaurants across the Northeast and Mid-Atlantic regions, with nearly 4,215 employees (969 full-time and 3,245 part-time). The filing revealed crushing debt obligations totaling $119.39 million, including $37.89 million in secured first-priority loans, $29.6 million in secured second-priority loans, and $42.9 million in additional secured debt, plus $9 million owed to unsecured creditors.
"With the rise in popularity of quick-casual restaurants and oversaturation of the restaurant industry as a whole, Bertucci's – and the casual family dining sector in general – has been affected by a prolonged negative operating trend in an ever increasing competitive price environment," Connell explained in the declaration. "Consumers have more options than ever for spending discretionary income, and their preferences continue to shift towards cheaper, faster alternatives."
The company pursued a sale process, selecting Right Lane Dough Acquisition, LLC as the stalking horse bidder. Ultimately, on June 5, 2018, the court approved a sale to Bertucci Holding, LLC for $3.05 million in cash, payment of the stalking horse's termination fee, issuance of a $13 million new second-lien note, and the assumption of various liabilities. The sale closed on June 21, 2018.
According to a motion to dismiss the case filed in October 2019, the sale proceeds were sufficient to repay the DIP financing but insufficient to pay the $37.9 million owed to the First Lien Lenders (let alone the additional $72.5 million owed to the Second Lien Lender). The motion stated: "The Debtors have no remaining unencumbered assets that could be used to satisfy the claims of any class of creditors." The court ultimately dismissed the case, with secured creditors receiving minimal recovery on their claims.
The Second Bankruptcy (2022): COVID's Lasting Impact
Four years later, on December 5, 2022, the newly formed Bertucci's Restaurants, LLC (which had acquired the assets from the 2018 bankruptcy) filed its own Chapter 11 petition in the U.S. Bankruptcy Court for the Middle District of Florida (Case No. 6:22-bk-04313-GER), represented by Shuker & Dorris, P.A.
The case management summary revealed the company was operating approximately 47 Italian-themed restaurants in 9 states, maintaining its corporate offices in Orlando, Florida. The filing painted a bleak financial picture: 2021 sales of $97.9 million with an operating loss of $14 million and a net loss of $7.2 million, followed by a 2022 net loss of $13 million on $92.1 million in sales.
"Unfortunately, due to the COVID-19 pandemic and the impact of inflation, sales declined and expenses increased," the company stated in court filings. "The Pandemic severely impacted the Restaurants and to combat the spread of COVID-19, public health officials urged all people to stay at home and to practice 'social distancing' when engaging in essential tasks."
Even after COVID restrictions were lifted, restaurant sales in New England failed to return to prior levels while wages and operating costs increased. The company attempted to negotiate lease terminations and restructures throughout much of 2022 before determining that Chapter 11 was the best vehicle to reorganize and preserve jobs.
The company's plan of reorganization, confirmed on September 22, 2023, included a complex restructuring of its obligations. According to the disclosure statement and post-confirmation reporting, the plan provided for:
- Administrative claims: 104% recovery ($451,776 paid on $432,859 in claims)
- Secured claims: 1% recovery ($190,714 paid on $21,040,714 in claims)
- Priority claims: 17% recovery ($321,956 paid on $1,950,192 in claims)
- General unsecured claims: 3% recovery ($1,151,200 paid on $36,871,053 in claims)
The plan included several notable features, including a "GUC Payment Amount" of $1.15 million for unsecured creditors, plus additional amounts if certain leases were rejected. The plan also featured a subordination agreement by secured lender PHL Holdings, LLC, which agreed not to exercise its rights or collect interest payments until the GUC Payment Amount was paid in full. The equity owners retained their interests but contributed new value to the reorganized company.
The plan became effective on October 20, 2023, with the company emerging as a reorganized entity with a streamlined restaurant portfolio of approximately 23 locations.
The Current Bankruptcy (2025): Continued Industry Headwinds
Despite its previous reorganization efforts, Bertucci's found itself filing for Chapter 11 protection yet again on April 24, 2025 (Case No. 6:25-bk-02401-GER), once more in the Middle District of Florida, represented by the same counsel, Shuker & Dorris, P.A.
The latest filing reveals a significantly contracted operation: just 15 open restaurants across 6 states, down from the 23 locations it retained after emerging from its 2022 bankruptcy. The company closed 7 additional underperforming locations immediately prior to filing.
Annual gross revenues have declined substantially, with $53.2 million reported for 2024 and $8.47 million for the first two months of 2025. The company's debt includes approximately $25 million in secured debt to affiliate PHL Holdings, LLC, about $58,000 in equipment financing, and roughly $7 million in unsecured debt. Priority claims include approximately $940,000 in federal payroll taxes and $943,000 in sales tax obligations.
In its case management summary, Bertucci's attributes its latest financial difficulties to "the unanticipated deterioration of the US economy and lack of consumer demand for legacy casual-dining brands," noting that many other major restaurant chains have recently filed bankruptcy, including Red Lobster, TGI Fridays, Tijuana Flats, Hooters, and On the Border.
"With losses accumulating, inflationary pressures still high, and industry headwinds gusting, the proverbial final straw fell on the Debtor's business this year as the world saw food costs soar, consumer spending slow, and an uncertain global economy falling in (and out) of decline," the company stated.
The company employs approximately 900 people and owes about $700,000 in wages for the pay period ending April 27, 2025. Among its immediate requests to the court are motions to maintain bank accounts, pay employee wages, and reject certain unprofitable leases.
Looking Ahead: A New Strategic Direction
Throughout its consecutive bankruptcy filings, Bertucci's has demonstrated the significant challenges facing traditional casual dining establishments in a rapidly evolving consumer landscape. The company's footprint has steadily decreased from 59 restaurants in 2018 to 47 in 2022, and now just 15 in 2025.
In its latest filing, Bertucci's signals a potential strategic shift, mentioning its development of a new fast-casual spinoff concept called "Bertucci's Pronto." This aligns with the company's acknowledgment that "consumers today have been gravitating toward fast-casual options over traditional sit-down restaurants."
"The Debtor intends to use the chapter 11 process to formulate a plan that will restructure its debts, streamline and reduce its operational expenses, and reorganize the business model in a way that will maximize the value of its assets for the benefit of creditors and all parties in interests," the company states in its 2025 filing. "The reorganization will prioritize streamlining operations by concentrating on high-performing locations and expanding the Debtor's fast-casual spinoff concept."
Whether this third attempt at reorganization will succeed where previous efforts have fallen short remains uncertain. However, the company's recognition of changing consumer preferences and its pivot toward a fast-casual model may indicate a more sustainable path forward in an increasingly challenging restaurant industry landscape.
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 multi-document 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.