The future of a Bay Area pizza chain is at stake after it filed for bankruptcy.
Mary’s Pizza Shack, which has been serving customers in the region for 65 years, filed for Chapter 7 bankruptcy on Tuesday.
The pizza chain currently operates 10 locations, and all are expected to remain open for now.
Documents filed in the U.S. Bankruptcy Court for the Northern District of California show the company has estimated assets between $100,000 and $500,000 with between 1,000 and 5,000 creditors.
Filing Chapter 7 bankruptcy allows a person or business to discharge most of their unsecured debts, such as credit card balances, medical bills, and personal loans.
Mary’s Pizza Shack, which has been serving customers in the region for 65 years, filed for Chapter 7 bankruptcy on Tuesday.
The bankruptcy will see Mary’s Pizza Shack restructure from a single corporation into smaller, family-owned restaurants run by third- and fourth-generation owners.
In a Chapter 7 case, the court appoints a trustee to liquidate the debtor’s nonexempt assets and distribute the proceeds to creditors.
The process can provide a “fresh start” for businesses by eliminating eligible debts.
Mary Fazio’s granddaughters will now take over the Sonoma-based brand, the company said in a statement, and the company’s 10 listed locations will remain open.
“This year we celebrate 65 years of being in business and we are not going anywhere,” the company said in a statement.
‘The legendary recipes you grew up with will remain the same and gift cards will continue to be accepted and sold at all locations.’
Last year, the company closed three restaurants in Dixon, Napa and Novato, while in 2022 restaurants in Santa Rosa and Sebastopol closed, blaming declining sales and rising food and labor costs.
The bankruptcy involves a restructuring of Mary’s Pizza Shack from a single corporation into smaller, family-owned restaurants run by third- and fourth-generation owners along with employees, the paper reported. Chronicle of San Francisco.
The pizza chain currently operates 10 locations, all of which are expected to remain open.
The restaurant first opened in Sonoma County in 1959 in Boyes Hot Springs, California, where founder Mary Fazio cooked everything from scratch.
The restaurant first opened in Sonoma County in 1959 in Boyes Hot Springs, California, where founder Mary Fazio cooked everything from scratch.
Although the chain is most famous for its pizzas, the restaurants also offer meatballs, sandwiches and salads.
Mary’s Pizza Shack is just one of several Bay Area food and beverage companies filing for bankruptcy.
Recently, coffee chain Red Bay Coffee and wine conglomerate Vintage Wine Estates filed for bankruptcy.