Osteria del Teatro, a cherished Italian restaurant with deep roots in Miami-Dade County, has filed for Chapter 11 bankruptcy following financial strains brought on by the pandemic. The North Bay Village establishment, which has served the community for 37 years, revealed in its filing that the hardships of recent years led it to pursue “disadvantageous financing” as a means of survival. Now, Osteria seeks to restructure its debts and regain stability.
The bankruptcy petition, submitted on October 22 to the U.S. Bankruptcy Court in Miami, lists liabilities reaching up to $1 million, with the restaurant holding around $50,000 in assets. Gilberto Gonzalez, Osteria’s president, filed the petition and is hopeful the reorganization process will help the restaurant restructure and continue its operations.
Major Creditors and Financial Landscape
Osteria’s largest creditor, Kalamata Capital Group, is owed $187,000 for a loan backed by a Uniform Commercial Code lien. This lender provides merchant cash advances, a popular financing option in the restaurant industry. These loans often offer immediate cash flow but are accompanied by daily or weekly repayments and high interest rates, making them a high-risk, high-cost solution for struggling businesses.