Bay Area pizza chain files for bankruptcy – with all locations under threat

The future of a Bay Area pizza chain hangs in the balance after filing for bankruptcy. 

Mary’s Pizza Shack, which has been serving customers in the region for 65 years filed for Chapter 7 on Tuesday.

The pizza chain currently operates 10 locations, all of which are expected to remain open for now. 

Filings in the U.S. Bankruptcy Court for the Northern District of California show the company to have an estimated $100,000 and $500,000 assets with between 1,000 and 5,000 creditors.

Declaring Chapter 7 bankruptcy allows an individual or business to discharge most of their unsecured debts, such as credit card balances, medical bills, and personal loans. 

The bankruptcy sees the Mary’s Pizza Shack being restructured 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 non-exempt assets and distribute the proceeds to creditors. 

The process can provide a ‘fresh start’ to businesses by wiping out eligible debts.

The granddaughters of Mary Fazio will now acquire the Sonoma-based brand, according to the company statement, and the company’s 10 listed locations will remain open.

‘This year, we celebrated 65 years of being in business, and we’re not going anywhere,’ the company said in a statement.

‘The legendary recipes you grew up on are staying the same and gift cards will continue to be honored 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 shuttered blaming a fall in sales and rising food and labor costs.

The bankruptcy sees the Mary’s Pizza Shack being restructured from a single corporation into smaller family-owned restaurants run by third- and fourth-generation owners alongside employees, reports the San Francisco Chronicle.

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 their pizzas, the restaurants also offer meatballs, sandwiches and salads.

Mary’s Pizza Shack is just one of a number of food and beverage companies in the Bay Area declaring bankruptcy. 

Recently coffee chain Red Bay Coffee and wine conglomerate Vintage Wine Estates both declared bankruptcy.