For decades, pizza chains have provided one of America’s favorite culinary delights to millions of satisfied diners.
Unfortunately for pizza fans, several restaurant chains have faced economic distress since the Covid-19 pandemic in 2020 and were forced into bankruptcy. Among the victims were Chuck E. Cheese parent company CEC Entertainment and California Pizza Kitchen in 2020, and pizza buffet chain CiCi’s in 2021.
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Economic pressures put more stress on the pizza segment this year, as Seattle-based Mod Pizza considered a bankruptcy filing in July after closing 27 of its 500 stores. It instead found a buyer in Chatsworth, Calif.-based Elite Restaurant Group.
Related: Iconic restaurant chain files bankruptcy after closing locations
Popular Sonoma, Calif.-based chain Mary’s Pizza Shack Sept. 10 filed for Chapter 7 protection in the U.S. Bankruptcy Court for the Northern District of California as the final step of a restructuring that will convert the business from a single corporation into smaller family-owned units.
Mary’s Pizza Shack began a corporate restructuring in fall 2022, which resulted in the company closing five restaurant locations, though it would reopen one location after eight months and continue operating 10 Northern California units.
EYM Pizza, which operates Pizza Hut locations in Illinois, Indiana, Ohio, Texas, and Wisconsin, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Texas on July 22.
The debtor hired franchise business brokerage National Franchise Sales to sell its restaurants through its Chapter 11 bankruptcy case, according to a statement from the broker.
The Irving, Texas-based pizza franchisee had previously been sued by Yum Brands’Â (YUM) Â Pizza Hut after it stopped paying royalties when a forbearance period with its parent company ended.
Related: Iconic restaurant chain closes more locations before bankruptcy
A previous lawsuit filed by EYM against Pizza Hut for alleged breach of fiduciary duty and other charges was dismissed. EYM Pizza is an affiliate of EYM Group.
Oath Pizza files for Chapter 7 to liquidate.
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Oath Pizza files Chapter 7 to liquidate
Finally, Next Level Pizza Inc., the parent company of the Oath Pizza chain, filed for Chapter 7 bankruptcy to liquidate its remaining company assets a year after it closed all corporate-owned locations, as it has said it can’t repay its creditors in full.
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The Boston-based debtor also said in its petition, which it filed in the U.S. Bankruptcy Court for the District of Delaware, that it won’t have sufficient assets to make a payment to unsecured creditors.
The debtor filed its petition facing several problems, including sales and profit challenges and a lawsuit between investors and a proposed buyer, Restaurant Business reported.
The debtor listed $100,000 to $500,000 in assets and $10 million to $50 million in liabilities.
Oath Pizza was founded in Nantucket, Mass., in 2015 and grew to eight company-owned and 21 franchised locations by 2021, a Forbes report said. A review of Oath Pizza’s website on Nov. 5 showed three remaining franchises in El Segundo, Calif.; Poulsbo, Wash.; and Wellesley, Mass.
The company, which adopted the Pieology Pizzeria-style of building a pie, opened franchise locations and restaurants on several college campuses located in New York, California, Pennsylvania, Ohio, and Virginia. All company-owned locations had closed by December 2023, according to QSR Magazine.
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