Bankrupt Italian restaurant chain seeks Chapter 7 liquidation

Italian restaurants and pizza chains are among the most popular concepts in the dining industry, but that popularity hasn't been enough to avoid financial distress in the sector.Economic challenges have forced several pizza and Italian restaurant chains to restructure their debts either out of court or in a bankruptcy filing.Three major pizza chains filed for Chapter 11 bankruptcy this year to reorganize their businesses, including Domino's Pizza franchisee People First Pizza, which filed on March 26, 2025; popular East Coast chain Bertucci's, which filed in April 2025; and Little Caesars pizza franchisee Red Door Pizza LLC, which filed for bankruptcy on July 15, 2025.Bravo Brio Restaurants files for Chapter 11 bankruptcyAside from pizza chains, Bravo Brio Restaurants, the parent company of popular upscale Italian restaurant chains Bravo Italian Kitchen and Brio Italian Grille, filed for Chapter 11 bankruptcy for the second time in five years to reorganize its businesses and restructure debt on Aug. 18, 2025.The company operates 25 Brio Italian Grille and 23 Bravo Italian Kitchen locations, according to its website.The common reasons restaurants blame for filing for bankruptcy are rising labor and food costs driven by inflation, a pullback in consumer discretionary spending, which reduced foot traffic, and lease rates that may no longer make economic sense.Pinstripes Holdings files for Chapter 7 bankruptcy to liquidate its remaining assets.PinstripesPinstripes Holdings files Chapter 7 liquidationAnd now, bankrupt Italian restaurant chain owner Pinstripes Holdings Inc. has filed to convert its Chapter 11 bankruptcy case to Chapter 7, seeking to liquidate its remaining assets after a bankruptcy court approved the sale of its restaurants for a $15 million credit bid on Oct. 31 and authorized the sale of a New Jersey liquor license for $1 million on Oct. 30.Pizza and Italian chain bankruptciesDomino's Pizza franchisee People First Pizza, March 26, 2025Bertucci's, April 2025Little Caesars franchisee Red Door Pizza, July 15, 2025Bravo Brio Restaurants, Aug. 18, 2025Pinstripes Holdings, Sept. 8 (Chapter 11)Pinstripes Holdings, Oct. 31 (Chapter 7) Chief Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware signed an order on Oct. 31 approving the sale of the Pinstripes Italian restaurants to the debtor's stalking-horse bidder and affiliate of the prepetition secured lender Silverview Credit Partners LP, known as SilverStrike LLC.The sale to SilverStrike is expected to close in mid-November, according to the debtor's motion to convert the bankruptcy case.The new owners plan to continue operating the seven existing Pinstripes locations.Owens also signed an order on Oct. 30 approving the sale of a New Jersey liquor license to Westfield Paramus Holdings LLC 5.Pinstripes filed for a prearranged Chapter 11 bankruptcy on Sept. 8 with a restructuring support agreement, seeking to sell its assets to Silverview for a credit bid of $15 million as the stalking-horse bidder in a Section 363 auction, owing over $115 million in debt.The debtor also obtained $6.2 million in debtor-in-possession financing from Silverview, which included a rollup of a $540,000 prepetition bridge loan.Pinstripes Holdings and four affiliates listed $100 million to $500 million in assets and liabilities in its Chapter 11 petition, listing over $143 million in secured debt obligations.Pinstripes reduced locations from 18 to 7Pinstripes was founded by CEO Dale Schwartz in Northbrook, Ill., in 2007 and expanded to 18 locations nationwide before closing over half of its locations, according to a declaration by Chief Restructuring Officer James Katchadurian.The Italian bistro chain offers guests access to its bowling lanes and bocce courts, in addition to its dining options.More bankruptcy:34-year-old casual dining chain files for Chapter 11 bankruptcyMajor seafood company files for Chapter 11 bankruptcy55-year-old women’s fashion company files Chapter 11 bankruptcyThe restaurant menu includes entrées, such as chicken parmesan or maple glazed salmon, various pastas, sandwiches, pizzas and flatbreads, salads, soups, sides, and desserts.Pinstripes currently operates seven locations in Bethesda, Md.; Cleveland; Edina, Minn.; Northbrook, Ill.; Oak Brook, Ill.; San Mateo, Calif.; and Washington, D.C., according to the chain's website.Pinstripes nationwide locationsBethesda, Md.ClevelandEdina, Minn.Northbrook, Ill.Oak Brook, Ill.San Mateo, Calif.Washington, D.C.Related: Heinz ketchup rival files for Chapter 11 bankruptcyThis story was originally reported by TheStreet on Nov 4, 2025, where it first appeared in the Restaurant section. Add TheStreet as a Preferred Source by clicking here.