CEO Thomas Sacco says in 2020 when the pandemic hit, labor and goods costs both went up, while profits stayed roughly the same.
So the company filed for Chapter 11 to reorganize and to "get out from under some of the leases."
"I've got no problem telling you, yes that corporation filed bankruptcy. But Happy Joe's franchising didn't. And Happy Joe's franchising is over 90% of the restaurants."
According to Sacco, employees who worked at the two Happy Joe's restaurants that closed because of the pandemic were transfered to a different location and delivery zones were absorbed by the existing restaurants.
"Nobody hates Chrysler because they filed bankruptcy a few years ago. They came back and became a much better compay. I'm expecting we will be a much better company over this."
This filing only affects 5 of the Happy Joe's restaurants. All of the other restaurants are franchise-owned.
Technically, the bankruptcy petition was filed by Dynamic Restaurant Acquisition, doing business as Happy Joe's Pizza.