Orlando, Florida, U.S.A.-based Bravo Brio Restaurants has filed for Chapter 11 bankruptcy protection for the second time.
The company, which is owned by Earl Enterprises and operates 25 Bravo! Italian Kitchen locations and 31 Brio Italian Grille locations across the U.S., first filed for bankruptcy in 2020. Before the first bankruptcy, the company operated around 100 restaurants, with that total almost halved by the time of the second filing.
In a statement, Bravo Brio cited economic forces and increased competition, primarily from fast-casual restaurants, for the newer filing. The company also said the newer filing was necessary to improve its financial position as it brings on new investors.
“In addition, ongoing 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. “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.”
The Chapter 11 process will allow Bravo Brio to reorganize its business for “a sustainable and successful future, including closing underperforming locations, restructuring debt, and streamlining and reducing operational expenses,” the company said.
Houston, Texas, U.S.A.-based food distribution firm Sysco is in the list of Bravo Brio’s top 20 creditors in the bankruptcy listing filed with the U.S. Bankruptcy Court for the Middle District of Florida. Sysco is owed an outstanding debt of more than USD 1.9 million (EUR 1.6 million).
Earl Enterprises bought Bravo and Brio Italian Grille from FoodFirst Global Holdings in June 2020, with the latter firm attributing the need to sell to negative effects from the Covid-19 pandemic.
“The Covid-19 outbreak truly could not have come at a worse time for our business. The mandated dining room closure orders wiped out [business at] 60 percent of our restaurants within days, and since then, we have experienced nothing short of devastating sales declines,” former FoodFirst CEO Steve Layt said in a press release at the time.
