A Domino’s Pizza franchisee is filing for bankruptcy amid a wave of closures affecting pizza chains and other fast-food restaurants nationwide.
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North County Pizza, Inc., a franchisee that owns one Domino’s Pizza location, filed for Chapter 11 bankruptcy on March 11, according to The Street.
The court filing estimates liabilities between $1 million and $10 million owed to between one and 49 creditors. Among the 20 largest debts, the filing lists multiple banks and Domino’s Pizza’s headquarters. The total debt to these top 20 creditors is over $3.3 million.
A Chapter 11 bankruptcy filing allows a business to reorganize, according to the U.S. Courts website. This process lets a corporation create a plan to keep the business running while paying back its creditors.
This means the Domino’s location owned by North County Pizza may remain open during the reorganization period.
Domino’s Pizza Franchisee Filing For Bankruptcy Comes After a String of Closures For Rival Pizza Chains
This filing comes amid a string of closures for pizza and fast-food restaurants throughout the U.S. this year.
On its Feb. 26 earnings call, Papa John’s announced plans to close about 300 underperforming North American restaurants by the end of 2027, with approximately 200 of those closures expected this year. The company also laid off about 7% of its roughly 700 corporate employees.
In February, Pizza Hut also announced plans to close approximately 250 locations in the first half of the year. The closures are part of a strategic review of the brand by its parent company, Yum! Brands.
Another fast-food franchisee has also recently filed for Chapter 11 bankruptcy. Sailormen, Inc., the owner of over 130 Popeyes locations in Florida and Georgia, filed for bankruptcy in January, according to a March 10 court filing.