Italian Kitchen and Brio Italian Grille, filed for Chapter 11 bankruptcy protection

Bravo Brio Restaurants, the parent company of Bravo! Italian Kitchen, filed for Chapter 11 bankruptcy for the second time in five years. The bankruptcy filing is intended to allow the company to "quickly and efficiently reorganize its business for a sustainable and successful future," which may involve closing underperforming locations due to increased competition, restructuring debt, and reducing operational expenses. Bravo! Italian Kitchen filed for Chapter 11 bankruptcy due to persistent macroeconomic pressures, including declining consumer demand, rising food and labor costs, increased competition particularly from fast-casual restaurants and underperformance in locations affected by high shopping center vacancies and reduced foot traffic.

Main Reasons For Filing Chapter 11 Bankruptcy Protection:

• Rising Costs: The company has been impacted by high inflation, rising food and labor costs, and increasing interest rates.
• Softening Consumer Spending: A decline in discretionary consumer spending and lower customer demand have hurt the business, particularly in shopping centers with high vacancies and declining foot traffic.
• Increased Competition: The company faces stiff competition, especially from fast-casual restaurants.