Another popular pizza chain files for Chapter 7 bankruptcy

In the world of cheesy slices and late-night cravings, it’s no secret that pizza has a unique hold on the American heart (and stomach). Pizza chains have thrived for decades by delivering comfort food that brings people together. However, since 2020, some of the most well-loved names in the pizza business have been dealing with severe financial heat. Starting with Chuck E. Cheese and California Pizza Kitchen, and followed by CiCi’s, several pizza chains felt the squeeze during the pandemic, forcing them into bankruptcy. Even years after the pandemic, the pizza industry’s challenges haven’t eased up.

Take Mod Pizza, based in Seattle. This fast-casual favorite, known for its build-your-own pizzas, was on the brink of bankruptcy just this past summer after shuttering 27 locations. Yet, it narrowly avoided financial doom by securing a buyer in Elite Restaurant Group. Meanwhile, Mary’s Pizza Shack, a family-owned California staple, filed for Chapter 7 bankruptcy in September. They aim to keep some of their legacy alive despite the downturn by transforming into smaller, family-operated units.

Pizza Hut franchisee EYM Pizza has also been struggling, filing for Chapter 11 bankruptcy in July. EYM operates multiple Pizza Hut locations across five states, including Texas and Illinois, but faced a major setback after a legal spat with Yum Brands, Pizza Hut’s parent company. With unpaid royalties piling up and previous lawsuits dismissed, EYM’s future hangs in the balance as it seeks to sell its restaurants to stay afloat.

Oath Pizza, known for its unique “Next Level” approach to pie, encountered troubles it couldn’t overcome. The Boston-based company filed for Chapter 7 bankruptcy after closing all its corporate locations, citing profit struggles and issues with a buyer. As a final blow, the company admitted it lacked the assets to cover debts to unsecured creditors, illustrating just how tough the pizza business has become.

As more beloved pizza brands fall into financial uncertainty, we’re left wondering how these chains can stay competitive in an ever-evolving market. Are rising costs, changing consumer habits, or new dining trends the primary culprits in these bankruptcies? Either way, this slice of America’s culinary scene faces serious challenges………..[read more]

Rising Dough

In a world where favorite brands can rise and fall like the tide, what role should investors and shareholders play in helping companies survive financial distress, especially in industries with such strong cultural appeal?