DOUGH WAY: Popular 65-year-old pizza chain with 10 restaurants becomes latest to file for bankruptcy
According to THE SUN, Mary’s Pizza Shack Corporation, a beloved 65-year-old pizza chain with 10 locations, has filed for bankruptcy, marking a significant moment for the well-known brand. The announcement was made on Tuesday, and the Sonoma-based company plans to continue operating its restaurants.
Bankruptcy Details
According to documents filed with the U.S. Bankruptcy Court for the Northern District of California, Mary’s Pizza Shack has assets ranging from $100,001 to $500,000 and between 1,000 and 5,000 creditors. Despite the bankruptcy filing, all 10 restaurants will remain open, and there are no plans to close additional locations following previous closures in 2022 and 2023.
The company reassured customers in a news release that the iconic recipes will remain unchanged and that gift cards will continue to be honored and sold at all locations. Mary’s Pizza Shack announced a restructuring in 2022, transitioning from a single corporation to smaller, family-owned restaurants run by third and fourth-generation owners. Each restaurant is now individually owned and operated by extended family members of the founder, Mary Fazio.
Mary Fazio started the brand in Boyes Hot Springs in 1959. The company has experienced multiple closures in the North Bay, including locations in downtown Santa Rosa, Sebastopol, Dixon, Napa, and Novato, due to declining revenue and rising food and labor costs.
Also Read: BIG UPDATE: Walmart announces more store closures for 2024
BurgerFi Files for Chapter 11 Bankruptcy Protection
In related news, BurgerFi, a fast-casual burger chain, has filed for Chapter 11 bankruptcy protection after shutting down several restaurants. The filing, made on September 11 in the District of Delaware, also involves Anthony’s Coal Fired Pizza, which is owned by BurgerFi.
Bankruptcy Details
BurgerFi and Anthony’s Coal Fired Pizza report assets ranging from $50 to $100 million and liabilities reaching up to $500 million, according to National Restaurant News. This filing comes less than a month after BurgerFi warned investors about potential financial trouble.
The company faced challenges reporting its latest quarterly earnings on time due to “significant adverse developments” affecting its business and liquidity. Earlier this year, BurgerFi received $2.5 million in funding from Trew Capital Management Private Credit 2 LLC, which required the company to show a plan to address its credit obligations.
BurgerFi had previously entered into a forbearance agreement with creditors, which was extended until July 31, as the company considered “strategic alternatives” to stabilize its finances.
