Popular 65-year-old pizza chain with 10 restaurants becomes latest to file for bankruptcy
A beloved 65-year-old pizza chain, Mary’s Pizza Shack Corporation, has become the latest restaurant to file for bankruptcy, marking a significant moment in its storied history. The Sonoma-based company announced the news on Tuesday, revealing plans for the brand’s future under the leadership of Mary’s granddaughters.
Bankruptcy Filing Details
Documents filed with the U.S. Bankruptcy Court for the Northern District of California indicate that Mary’s Pizza Shack has assets between $100,001 and $500,000, alongside a substantial creditor base of between 1,000 and 5,000. Despite the bankruptcy filing, the company assured patrons that all ten of its restaurants will remain open, with no additional closures planned, following a wave of shutdowns that occurred from 2022 to 2023.
In a release on Wednesday, the company emphasized its commitment to longevity: “This year, we celebrated 65 years of being in business, and we’re not going anywhere. The legendary recipes you grew up on are staying the same, and gift cards will continue to be honored and sold at all locations.”
Restructuring for Future Success
To adapt to changing market conditions, Mary’s Pizza Shack announced a restructuring plan in 2022, transitioning from a single corporation to smaller, family-owned restaurants operated by third and fourth-generation owners. Each restaurant is now individually owned and operated by extended family members of Mary Fazio, the founder, ensuring that the brand’s heritage remains intact.
Mary’s Pizza Shack began its journey in Boyes Hot Springs back in 1959. However, the brand has faced challenges, leading to the closure of several locations across the North Bay, including downtown Santa Rosa, Sebastopol, Dixon, Napa, and Novato. These closures have been attributed to declining revenue coupled with rising food and labor costs.
BurgerFi’s Financial Troubles
Mary’s Pizza Shack is not alone in facing financial hardships; BurgerFi, a fast-casual burger chain, has also filed for Chapter 11 bankruptcy protection after closing multiple restaurants. The filing, made on September 11 in the District of Delaware, reported assets ranging from $50 to $100 million and liabilities reaching up to $500 million.
This situation follows a warning from BurgerFi to investors about potential financial difficulties, which resulted in the company being unable to report its latest quarterly earnings on time due to “significant adverse developments” impacting its business and liquidity. Earlier this year, BurgerFi secured $2.5 million in funding from Trew Capital Management Private Credit 2 LLC, with the stipulation that the company demonstrate a solid plan for utilizing the funds to meet its credit obligations.
BurgerFi has also entered into a forbearance agreement with creditors, which extends until July 31, while evaluating “strategic alternatives” to stabilize its finances.
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