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California-based Little Brown Box Pizza, parent company of Pieology, has filed for Chapter 11 bankruptcy, listing $1 million to $10 million in debts.
Founded in 2011, Little Brown Pizza Box once boasted more than 100 locations, according to QSR Magazine.
Now, the company has dwindled to about 40 locations across Hawaii, California, Nevada, New Mexico, Texas, Florida and Guam.
Court filings show the company is entering bankruptcy protection with assets ranging between $100,001 and $1 million.
Pieology is known for its subway-style service and is often hailed a “pioneer” in the DIY pizza sector.
Pieology listed more than 200 creditors on its petition — including landlords and venders.
The filing comes approximately eight years after the chain’s peak expansion.
In 2017, the company grew to about 150 locations after securing investments from Panda Express founders and even NBA all-star Kevin Durant.
Restaurant News reports that Pieology’s momentum slowed in recent years as it faced mounting competition, growing debts and “market saturation.”
By 2019, the chain shrunk to 125 locations.
And the COVID-19 pandemic took its toll, too.
The chain shrunk to 116 locations by 2021 and finished 2024 with 103.
According to Restaurant News, the company said it plans to restructure operations while continuing to serve customers.
Chapter 11 filings signal an opportunity to restructure, rather than liquidate.
A Chapter 11 bankruptcy filing is often called the “reorganization chapter,” as it allows companies to “reorganize without having to liquidate,” as per U.S.Courts.gov.
When someone files for Chapter 11 bankruptcy, they have to give creditors a plan for how they will fix their financial situation.
If the creditors agree to the plan and a judge approves it, the business can then reorganize their finances and work toward becoming financially stable again.
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