Which well-known retail stores have filed for bankruptcy?
Red Lobster, Walgreens, Rite Aid and many other retailers are struggling with deteriorating financial conditions.
Two national restaurant chains with locations in Louisville filed for Chapter 11 bankruptcy this month: Buca di Beppo and World of Beer Bar & Kitchen. Will the filings lead to restaurant closures in Kentucky?
Here’s what we know:
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Restaurant chains with locations in Louisville file for bankruptcy
Buca di Beppo, an Italian restaurant chain based in Orlando, filed for bankruptcy on Aug. 5, citing rising costs and staffing difficulties, among other issues, USA TODAY previously reported. In addition, Tampa-based chain World of Beer Bar & Kitchen filed for bankruptcy on Aug. 2, the Florida Times-Union reported.
Both have locations in east Louisville – Buca di Beppo is at 2051 S Hurstbourne Parkway and World of Beer Bar & Kitchen is at 9850 Von Allmen Court.
Has Buca di Beppo filed for bankruptcy?
Yes. Buca di Beppo filed for Chapter 11 bankruptcy in early August in the U.S. Bankruptcy Court for the Northern District of Texas, owing nearly $50 million to 30 creditors. In July, the chain closed about 20% of its stores. 44 are to be restructured, and a new store is to be opened once the closures are complete.
Is World of Beer filing for bankruptcy?
Yes. World of Beer filed for Chapter 11 bankruptcy in early August with the Tampa Division of the U.S. Bankruptcy Court for the Middle District of Florida. This was a result of “growing market pressures, including rising interest rates, inflation, increased operating costs and a slow return of consumers to pre-pandemic eating habits,” the Florida Times-Union previously reported.
Will the Buca di Beppo and World of Beer locations in Louisville remain open?
According to USA Today, Buca di Beppo’s location at 2051 S Hurstbourne Parkway remains open.
As of Saturday, the Courier Journal could not confirm whether World of Beer’s bankruptcy filing might impact the 9850 Von Allmen Court location.
What is insolvency?
Bankruptcy is a legal process that allows people or businesses with outstanding debts to eliminate some or all of their debts and create a repayment plan. According to the U.S. courts, all bankruptcy cases are handled by federal courts, and filing bankruptcy “helps individuals who can no longer pay their debts get a fresh start by liquidating assets to pay off their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.”
What is Chapter 11 bankruptcy?
According to U.S. courts, a Chapter 11 bankruptcy is often referred to as a “reorganization” bankruptcy. Typically, the debtor remains “in possession,” has the powers and duties of a trustee, can continue to operate its business, and can borrow new money with court approval. A plan of reorganization is proposed, creditors whose rights are affected can vote on the plan, and the plan can be confirmed by the court if it receives the necessary votes and meets certain statutory requirements.”
Marina Johnson is a breaking and trending news reporter for the Courier Journal. Reach her at [email protected].
