Iconic pizza chain files for Chapter 11 bankruptcy

Fast-casual and fast-food restaurant chains have faced financial distress in 2024, with some companies taking into account economic ruin and others following through with Chapter eleven or Chapter 7 filings.

The pizza business has been especially rough this year with a couple of chains taking into account economic ruin filings.

Related: Well known fast-food chain owner files for Chapter eleven economic ruin

The Covid-19-19 pandemic had already impacted a couple of pizza chains before this year, as Chuck E. Cheese's parent company CEC Entertainment filed for Chapter eleven protection in June 2020, blaming the pandemic and the strain from keeping its restaurants closed.

California Pizza Kitchen filed for Chapter eleven economic ruin in July 2020 in a pre-negotiated reorganization with its lenders, and pizza buffet chain Cici's, in January 2021 filed for Chapter eleven economic ruin on the look for a sale to D&G Investors. The company had about 318 locations in 2021 and now has 275, consistent with Cici's web page online.

EYM Pizza, which operates roughly 100 and forty Pizza Hut locations in Texas, Wisconsin, Ohio, and Indiana, has faced some financial difficulties and recently closed over 15 locations in Ohio and Indiana

The debtor filed for Chapter eleven economic ruin protection within the Eastern District of Texas on July 22 after Pizza Hut sued the franchisee for nonpayment of royalties. The debtor has lower than $50,000 in assets and $500,000 to $1 million in liabilities.

Seattle-based Mod Pizza, which operates over 500 locations within the U.S. and Canada, has closed 27 stores this year and in July turn out to be taking into account filing for Chapter eleven protection.

Related: Well known fast-food burger chain files for Chapter eleven economic ruin

The pizza chain, which turn out to be founded by Scott and Amy Svenson in 2008, started a made-to-order personal pizza craze that resulted in the establishment of similar pizza chains with Pieology's launch in 2011 and Blaze in 2012.

As Mod Super Fast Pizza Holdings turn out to be taking into account a economic ruin filing, Elite Restaurant Group of Chatsworth, Calif., in July acquired 100% of Mod’s equity in a merger agreement between the company and an Elite affiliate.

Mary's Pizza Shack files for economic ruin

In the tip, iconic Northern California pizza chain parent Mary's Pizza Shack Corp. on Sept. 10 filed for Chapter 7 protection within the U.S. Financial disaster Court for the Northern District of California because the final step of a restructuring a fine approach to convert the business from a single corporation into smaller family-owned units.

The restructuring plan, which began in February 2023, calls for founder Mary Fazio's granddaughters to amass the brand all through the Chapter 7 economic ruin process, to be able to consist of liquidation of assets to repay creditors.

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In most Chapter 7 bankruptcies, the debtors liquidate their assets and exit of business. In Mary's Pizza Shack's case, all 10 restaurant locations will remain open and continue operating, consistent with a corporation statement.

Mary's Pizza Shack in fall 2022 revealed plans for its corporate restructuring. That year, the Sixty five-year-old company shuttered two restaurants in Santa Rosa and Sebastopol, Calif., and then in 2023 closed three more in Dixon, Napa and Novato, Calif., the San Francisco Chronicle reported at the time.

Mary's reopened the Napa location after eight months of closure.

The company said the after-effects of the Covid-19-19 pandemic resulted in the restaurant closings.

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