Bravo! Italian cuisine and Brio Italian Grille Company Files for bankruptcy

Bravo Brio Restaurants LLC, Bravo’s father! Italian cuisine and BRIO ITALIAN Grille, they were presented to protect against bankruptcy, Chapter 11 for the second time in five years, noting the “sharp financial distress” facing the industry.

The company at the US Banking Court of Banking in the Central Region in Florida submitted on August 18, with the aim of restructuring its debts, simplifying operational expenses, ridicule weak lease contracts, closing weak sites and attracting a new investor.

Before providing bankruptcy protection, the company closed seven sites. In total, there are 48 sites operating all over the country under the brands of brands with about 4000 employees. Forty -seven rented site.

In the deposit, the company said that although the immediate impact of Covid-19 had calmed down, the country later faced “rampant inflation and sharp double interest rates.”

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These pressures hindered the spending of consumers across industries, although the company said that the informal restaurant sector was “particularly difficult.”

The company said in raising the price level: “Restaurants, especially the LEGACY Disual Restaitrants, have been affected by the” Legacy Disuel “brands, which are not commensurate because they are working on thin margins, which depend greatly on appreciated consumer spending, and faces higher sensitivity to food, employment and employment increases,”

These are the reasons why there are many files of Chapter 11 among the old brands including Red Lubster, Tiguana Flas, Friday and Opera.

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Bankruptcy lawyer Daniel Gilchinsky is expected to be in February An increasing number of major restaurant chains It is possible to continue to provide bankruptcy protection over the coming years.

Several factors resulted in its fall, according to Jelchinski, founder and partner of the South Florida DGIM.

However, the Covid-19 pandemic was the catalyst, as the industry witnessed a significant decrease in traffic. The operators wanted to keep their doors open, so they had to cover costs such as rent, insurance and salaries, although customers were not entering. To stay standing on his feet, restaurants depend on government subsidies, but also when directing Loans to finance work expenses. This means that companies accumulated the debts that they had to pay over time in addition to interest.

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However, the problem is that the industry expects to spend consumers in restaurants to return to prenatal levels as soon as things return to normal. When it didn’t happen, the debt -full restaurants were unable to pay these loans, according to Jelchinski.

The revenues of the upper line did not rise, according to Gilchenski, who said that “customers have no full power” due to the changes in their customs and the ability to spend.