The iconic pizza chain files for Chapter 11 bankruptcy

Fast-casual and fast-food restaurant chains have faced financial difficulties in 2024, with some companies considering bankruptcy and others pursuing Chapter 11 or Chapter 7 filings.

The pizza business has been particularly difficult this year, with several chains considering filing for bankruptcy.

Related: Owner of popular fast-food chain files for Chapter 11 bankruptcy

The Covid-19 pandemic had already affected several pizza chains earlier this year, as Chuck E. Cheese’s parent company CEC Entertainment filed for Chapter 11 protection in June 2020, blaming the pandemic and the strain of keeping their restaurants closed.

California Pizza Kitchen filed for Chapter 11 bankruptcy in July 2020 in a pre-negotiated reorganization with its creditors, and pizza buffet chain Cici’s in January 2021 filed for Chapter 11 bankruptcy, filing a sale to D&G Investors. The company had about 318 locations in 2021 and now has 275, according to the Cici website.

EYM Pizza, which operates about 140 Pizza Hut locations in Texas, Wisconsin, Ohio and Indiana, has faced some financial difficulties and recently closed more than 15 locations in Ohio and Indiana.

The debtor filed for Chapter 11 bankruptcy protection in the Eastern District of Texas on July 22 after Pizza Hut sued the franchisee for nonpayment of royalties. The debtor has less than $50,000 in assets and $500,000 to $1 million in liabilities.

Seattle-based Mod Pizza, which operates more than 500 locations in the U.S. and Canada, has closed 27 stores this year and in July considered filing for Chapter 11 protection.

Related: Popular fast-food burger chain files for Chapter 11 bankruptcy

The pizza chain, which was founded by Scott and Amy Svenson in 2008, started a personal made-to-order pizza craze that led to similar pizza chains launching Pieology in 2011 and Blaze in 2012.

As Mod Super Fast Pizza Holdings considered a bankruptcy filing, Chatsworth, Calif.-based Elite Restaurant Group acquired 100 percent of Mod’s equity in July through a merger agreement between the company and an Elite subsidiary.

Mary’s Pizza Shack filed for Chapter 7 bankruptcy as part of a corporate restructuring.

Mary’s Pizza Shack

Mary’s Pizza Shack files for bankruptcy

Finally, iconic Northern California pizza chain Mary’s Pizza Shack Corp. on Sept. 10 filed for Chapter 7 protection in the U.S. Bankruptcy Court for the Northern District of California as a final step of a restructuring that will transform the business from a single corporation to a single corporation. smaller family-owned units.

The restructuring plan, which began in February 2023, calls for founder Mary Fazio’s granddaughters to purchase the brand through Chapter 7 bankruptcy, which will include liquidating assets to pay creditors.

More bankruptcy stories:

• Retail chain Big Lots is poised to file for Chapter 11 bankruptcy
• Manufacturers of popular retail products file for Chapter 11 bankruptcy
• The mattress company’s rival files for Chapter 11 bankruptcy

In most Chapter 7 bankruptcies, debtors liquidate their assets and go out of business. In the case of Mary’s Pizza Shack, all 10 restaurant locations will remain open and continue to operate, according to a company statement.

Mary’s Pizza Shack in the fall of 2022 revealed plans for a corporate restructuring. That year, the 65-year-old company closed 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 has reopened its Napa location after eight months of closure.

The company said the after-effects of the Covid-19 pandemic led to the restaurant’s closure.

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