Restaurant chain Bravo Brio files for bankruptcy for the second time
Bravo Brio Restaurants, the parent company of Bravo Cucina Italiana and Brio Italian Grill, has filed for Chapter 11 bankruptcy protection for the second time in five years. The filing comes amidst a challenging period for the casual dining sector, with the company citing macroeconomic challenges such as declining consumer demand, increased competition, and rising food and labor costs as the primary reasons for their financial struggles.
The bankruptcy filing allows Bravo Brio to close underperforming locations, restructure debt, and reduce costs. Both of its main brands have been affected, with several restaurant closures reported. Brio Italian Grille, the larger of the two chains with 31 locations, has seen revenues decline significantly—down 5.5% recently and 47% over five years.
This financial distress mirrors a broader trend in the casual dining sector, where multiple legacy brands have filed bankruptcy due to similar pressures. The impact on Bravo and Brio brands includes contraction of their footprint and attempts to streamline operations to remain viable during difficult market conditions.
Bravo Brio blames "macroeconomic forces beyond the company's control" for the problems, including declining consumer demand, increased competition, and rising food and labor costs. The company also highlighted problems specific to locations in shopping centers suffering from high vacancies and reduced foot traffic.
The company's estimated assets and liabilities are between $50 million and $100 million. Sysco Corp. is the largest unsecured creditor listed in bankruptcy documents, at $1.9 million. Exactly how many restaurants could close is uncertain, but local reports suggest that both Bravo and Brio have been shutting down locations.
Bravo Brio was founded in Columbus, Ohio, and went public in 2010. In 2018, it was sold to GP Investments for $100 million. The company's troubles began shortly after the start of the pandemic, when it filed for bankruptcy and shuttered about half of the chain's nearly 100 locations.
The casual-dining sector has faced these issues, with numerous other legacy brands also turning to bankruptcy for restructuring. The sector has been hit hard by the rise of fast-casual restaurants and the ongoing inflationary pressures, making it difficult for many established brands to remain competitive.
Robert Earl, the founder of Planet Hollywood and Earl of Sandwich, had earlier taken interest in Bravo Brio when it was a publicly traded company. For a while, Bravo Brio appeared to be leading a generation of polished casual-dining chains. However, the challenges faced by the industry have proven too much for many, including Bravo Brio.
[1] - Bravo Brio Restaurants file for bankruptcy [2] - Bravo Brio Restaurants to close underperforming locations [3] - Bravo Brio Restaurants file for bankruptcy for second time [4] - Bravo Brio Restaurants cite macroeconomic challenges for bankruptcy filing
Read also:
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
- Unveiling Innovation in Propulsion: A Deep Dive into the Advantages and Obstacles of Magnetic Engines
- Intensified farm machinery emissions posing challenges to China's net-zero targets
- EU Fuel Ban Alerts Mercedes Boss of Potential Crisis
