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Pieology Parent Files for Chapter 11, Plans to Keep Stores Open

Franchisees face uncertainty over contracts during the court-supervised restructuring.

Overview

  • The Little Brown Box Pizza, LLC filed on December 8 in the U.S. Bankruptcy Court for the Central District of California, with an affiliate, Kustom Partner, LLC, also seeking protection.
  • Filings list assets of $100,000 to $500,000 against liabilities of $1 million to $10 million and name more than 200 creditors.
  • Schedules cite a $125,946 priority tax claim to the California Department of Tax and Fee Administration and over $360,000 in unsecured claims to two Sysco entities.
  • The company says restaurants will keep operating under a small-business Chapter 11 process that enables continued operations during reorganization.
  • Pieology’s footprint has shrunk sharply from roughly 150 locations at its 2017 peak to a far smaller network concentrated in California, with reports varying between about 40 and 70 stores.