Company behind popular Raleigh Italian restaurant files for bankruptcy

Monica Eats Inc., which owns the popular Raleigh Italian eatery, filed for Chapter 11 bankruptcy on Feb. 8.

The company's assets are estimated to between $100,000 and $500,000, while its debts total more than $1 million, according to court documents filed with the bankruptcy court of the Eastern District of North Carolina.

Filing for Chapter 11 bankruptcy allows the court to reorganize the debt and negotiate terms instead of having to sell off all assets.

Owner and chef Corbett Monica filed the paperwork on behalf of Monica Eats this week, but had previously started Chapter 7 bankruptcy protection proceedings for Bella Monica Flatbread Company in August 2017.

In Chapter 7, the assets of the debtor are sold off to pay its lenders.

At the time, it was estimated that the company had less than $50,000 in assets and was between $100,000 and $500,000 in debt.

That case was closed on Monday.

Monica and his wife, Julie, opened Bella Monica in 2000 on Edwards Mill Road in Raleigh. It has been a multiple WRAL.com Voters' Choice Winner for best Italian cuisine.

In that filing on Feb. 8, the business reported that it owes more than $1 million, including more than $124,000 in unpaid rent and a $67,000 business loan from Monica Eats Inc. It has between $50,000 and $100,000 in assets.