Pizza parlors have been a popular restaurant concept for decades that diners love to patronize.
Fans of pizza chains are devastated whenever their favorite restaurant location permanently closes, and it has been happening more often since the Covid-19 pandemic.
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Pizza buffet chain Cici's was hit hard by the Covid shutdowns and filed for Chapter 11 bankruptcy in January 2021 and closed about 43 locations.
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Financial distress also threatened the pizza segment this year, as Seattle-based Mod Pizza considered a bankruptcy filing in July 2024 after closing 27 of its 500 stores. It instead found a buyer in Chatsworth, Calif.-based Elite Restaurant Group.
Popular Sonoma, Calif.-based chain Mary's Pizza Shack on Sept. 10 filed for Chapter 7 protection in the U.S. Bankruptcy Court for the Northern District of California as the final step of a restructuring that would convert the business from a single corporation into smaller family-owned units.
Mary's Pizza Shack began a corporate restructuring in fall 2022, which resulted in the company closing five restaurant locations, through it would reopen one location after eight months and continue operating 10 Northern California units.
The distress has continued into 2025 as bankrupt EYM Pizza L.P., which once operated 127 Pizza Hut locations in five states, has been busy closing locations this year without saying if or when the shuttered restaurants will reopen.
Pizza Hut
Pizza Hut franchisee closes locations
The Pizza Hut franchisee on Jan. 25 permanently closed its location in Yorkville, Ill., according to a note posted on the restaurant's entrance, WSPY-Radio reported.
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"As of Saturday, January 25th, we are closed until further notice per corporate.
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"It has been a pleasure serving the community for so many years, and we appreciate each and every one of you.
"Our staff is deeply saddened by this, and we miss being at your service.
"Thank you, Yorkville, for so many great years," the note said.
EYM Pizza closes several restaurants
EYM Pizza also closed its Pontiac, Washington, Germantown Hills, and Peoria, Ill., Pizza Hut locations in recent weeks, Pontiac Daily Leader reported on Jan. 15.
The pizza chain franchisee posted a brief note on its Pontiac restaurant window announcing the closure.
"Sorry we're closed until further notice," the note read. "Sorry for the incovenience."
EYM Pizza, which operated Pizza Hut locations in Georgia, Illinois, Indiana, South Carolina, and Wisconsin, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Texas on July 22.
After filing for bankruptcy, the debtor hired franchise business brokerage National Franchise Sales to sell its restaurants through its Chapter 11 case, according to a statement from the broker.
About 39 of the debtor's locations were sold with 88 others set for potential closing, according to court documents, a Pizza Hut employees Reddit post reported.
The debtor's largest unsecured creditors included Manufacturer's Bank, owed over $21.6 million, and Pizza Hut LLC, owed over $2.2 million, according to the debtor's petition.
The Irving, Texas-based pizza franchisee had previously been sued by Yum Brands' (YUM) Pizza Hut after it allegedly stopped paying royalties when a forbearance period with its parent company ended.
A previous lawsuit filed by EYM against Pizza Hut for alleged breach of fiduciary duty and other charges was dismissed.
EYM Pizza is an affiliate of EYM Group, which also operates Denny's and Panera Bread franchises. The parent company once owned KFC franchises under EYM Chicken Operations, but no longer lists KFC locations on its website.
Pizza Hut LLC, which has over 6,700 locations in the U.S., posted a note on its website revealing that it was closing restaurants but did not say how many.
"We've made the difficult decision, together with certain franchisees, to close a limited number of locations in the U.S.," according to the statement.
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