June 14, 2024

A large company with 66 stores declares bankruptcy

2 min read
A large company with 66 stores declares bankruptcy

A chain of pizza restaurants with more than 66 units declares bankruptcy due to the debts of a millionaire. Find out which company has closed its doors

The wave of bankruptcies due to the pandemic seems to be happening in several countries around the world. This Tuesday (14) the chain of traditional Japanese pizza restaurants ended its activities and started the process of bankruptcy due to the debts of the millionaire.

a Chicago Pizza Factory It is a large company in the food sector operating in several cities in Japan and has 66 units across the country. Originally from Osaka, he was mainly active in the Kinki, Kanto, Chugoku, and Shikoku regions.

The pizzeria was known for serving several different types of pizza, but also for serving donburi, a traditional dish of Japanese cuisine. Also known as a don, this is a rice bowl with meat, vegetables and vegetables.

A large company declares bankruptcy due to the debts of a millionaire

According to information received from the lawyer responsible for the Chicago Pizza bankruptcy process, the main reason for closing the activities is the debts that the company has accumulated in recent years. The company’s debt is currently 1.5 billion Japanese yen (about R$60 million).

In recent years, the pizzeria has shown a steady decline in turnover, even as the number of delivery orders increased during the COVID-19 pandemic. By the way, this is one of the reasons for bankruptcy.

In 2020, the company sold 4.2 billion yen (more than R$167 million). However, in 2021, the sales volume decreased to 3.4 billion yen (about R$135 million).

Other reasons for breakage

In addition to the decline in Chicago Pizza’s revenue, the lawyer points to other reasons that contributed to the bankruptcy of the snack bar chain. She says there has been a sharp increase in production and labor costs in Japan in recent years.

It also indicates an increase in the number of companies specializing in pizza delivery, and therefore the growth of competition is directly related to the closure of the company.

Photo: Andrii Yalanskyi/Shutterstock.com

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