Mary’s Pizza Shack, a Bay Area staple for 65 years, has filed for Chapter 7 bankruptcy. The company, known for its pizza, is currently operating 10 locations.
The bankruptcy filing, submitted on Tuesday to the U.S. Bankruptcy Court for the Northern District of California, reveals that the chain’s assets are estimated between $100,000 and $500,000, with 1,000 to 5,000 creditors involved.
Chapter 7 bankruptcy allows businesses to eliminate most unsecured debts, such as credit card balances and personal loans. Under this process, a court-appointed trustee liquidates non-exempt assets to pay creditors. This can offer a business a chance for a fresh start by clearing eligible debts.
According to a company statement, the brand will be taken over by the granddaughters of founder Mary Fazio. Despite the bankruptcy, all 10 locations will remain open. The company reassured customers, stating, “We celebrated 65 years in business this year, and we’re not going anywhere.” It also confirmed that its traditional recipes will continue, and gift cards will still be honored and sold.
In recent years, the company has faced challenges, closing locations in Dixon, Napa, Novato, Santa Rosa, and Sebastopol due to declining sales and increased costs.
The San Francisco Chronicle reports that the bankruptcy will lead to a restructuring of the chain. It will be converted from a single corporation into smaller, family-owned restaurants managed by third- and fourth-generation owners alongside employees.
Mary’s Pizza Shack first opened in Boyes Hot Springs, California, in 1959, with Mary Fazio cooking everything from scratch. In addition to its well-known pizzas, the restaurant also offers meatballs, sandwiches, and salads.
Mary’s Pizza Shack joins other Bay Area food and beverage companies that have recently filed for bankruptcy, including Red Bay Coffee and Vintage Wine Estates.