Arizona Local Pizza Chain Declares Bankruptcy

Since 1976, Streets of New York has been serving up slices, pasta, and other Italian fare across the Valley. It is such an Arizona staple that it has previously been declared the official pizza of the Phoenix Suns and the Arizona Diamondbacks. Even with these endorsements and nearly 50 years in business, the pizza chain has apparently faced some setbacks. 

Streets of New York filed a chapter 11 bankruptcy petition in Arizona on October 16, 2025. Chapter 11 bankruptcy is a special form of bankruptcy that businesses can use to reorganize without shutting down. Streets of New York also utilized a subchapter V filing, which is a special type of chapter 11 bankruptcy filing for small businesses that allows them to bypass the appointment of a creditor committee. Despite having 15 locations across Arizona and one in Nevada, Streets of New York listed liabilities between $100,00 and $1,000,000 in its petition, and the same amount in assets. But just the next day, on October 17, 2025, the court issued a deficiency notice, meaning documents were missing from the pizza institution’s filing. Streets of New York failed to rectify this error, and the case was dismissed on October 20, 2025. 

Streets of New York is one of the most iconic pizza chains in Arizona, and it can be surprising to see a business that is so well-established to file for bankruptcy. If you are struggling with the same market pressures that forced Streets of New York into bankruptcy, you may be considering filing your own petition. One way to ensure your case is successfully discharged, instead of being dismissed, like Streets of New York’s case, is by retaining skilled legal counsel to handle your case. At Chapter Bankruptcy Lawyers, our team is passionate about helping our clients better their lives by clearing their debts. We offer flexible post-filing payment options and start the process with a free case evaluation by phone. Schedule yours today by calling our office at 480-405-1010. 

Why This Economy Is So Tough For Restaurants

It’s hard to leave home without noticing how much more expensive everything has become since the pandemic. One of the most notable increases in living expenses lately has been the cost of food. Food prices have soared at both restaurants and grocery stores. But with prices sky-high, grocery shopping and cooking will almost always be cheaper than going out to eat. When it comes to paying the electricity bill or stopping at the drive-through on the way home, it’s clear which is more important. So with more people prioritizing restaurant dining lower in their monthly budgets, fast-casual has been one of the most impacted sectors of the food industry. Nowadays, it often only costs a few dollars more than fast food to go to a high-quality restaurant. And hard-earned cash is better saved for special occasions than a quick meal that could have been prepared at home. This leaves restaurants- especially fast-casual eateries- with fewer customers coming in as rent and labor costs continue to rise. 

Several major players in the fast-casual restaurant industry have taken advantage of bankruptcy’s numerous protections in recent years. Several filed during the pandemic in response to stay-at-home orders and forced closures of restaurants and other non-essential businesses. Last year, Red Lobster and Rubio’s Coastal Grill were two of the country’s most famous restaurants to file for chapter 11 bankruptcy. Another Arizona-based pizza chain, Fired Pie, filed for bankruptcy and closed all of its locations in 2024. In 2025, Hooters, Bravo Brio, and On The Border Mexican Grill have all made headlines with bankruptcy filings. The largest Burger King franchisee in the United States also declared bankruptcy in 2025. 

Bankruptcy Case Dismissals

Streets of New York’s chapter 11 bankruptcy petition was ultimately dismissed. This is generally considered an unsuccessful resolution of a bankruptcy case. The case must reach discharge for the debtor’s liabilities to be cleared. A bankruptcy case can be dismissed with or without prejudice. A dismissal is usually designated as “without prejudice” if the errors leading to the dismissal seem unintentional, and the debtor is typically allowed an opportunity to re-file their case. When a case is dismissed with prejudice, the inaccuracies in the petition will seem more like intentional fraud, and the debtor will be barred from filing again, either for a certain period of time or permanently. Here, Streets of New York has a chance to submit the documents missing from its petition to bring its bankruptcy case back into good standing. 

One of the primary reasons that debtors file for bankruptcy is to protect themselves from creditors with the automatic stay. The automatic stay stops creditors in their tracks, preventing lawsuits, wage garnishments, repossessions, and more while a case is active. But that protection ends when a case is dismissed. The protection can also end in regards to a singular creditor if they file a successful motion for relief from the automatic stay. Some of the reasons that a bankruptcy case might be dismissed include:

• The debtor calculated their means test incorrectly or their results don’t qualify them for the chapter of bankruptcy filed
• The debtor failed to complete their first credit counseling course before filing or failed to attach their course completion certificate with their petition
• The debtor filed for bankruptcy failing to meet the waiting period requirement in place from a prior bankruptcy filing 
• The debtor failed to attend their 341 Meeting of Creditors- the trustee will typically continue a case at least once before dismissing for this reason
• The debtor failed to pay their filing fee or make payments on their filing fee installment plan
• The debtor failed to complete their second credit counseling course within 60 days of the 341 Meeting of Creditors or forgot to file the course completion certificate in court
• The debtor committed bankruptcy fraud by hiding assets, transfers, and other financial factors that would have been unfavorable to their bankruptcy case
• The debtor failed to provide certain documentation to support the information provided in their bankruptcy petition
• The debtor in a chapter 13 bankruptcy case failed to make their monthly payments in full

Struggling With Debt But Want Your Bankruptcy Case To Go Smoothly? Contact Arizona’s Leading Choice For Zero Down Bankruptcy Representation. 

Streets of New York has been serving delicious pizza at several locations across Arizona for nearly five decades, but the current economy is presenting unforeseen challenges for businesses and individuals alike. Mismanaged debt has severe consequences that your creditors could be bringing to fruition in the near future. But filing for bankruptcy puts an instant stop to all collection efforts by creditors, giving you a chance to catch your breath before addressing your debts and potentially clearing your obligations for good. Want to make sure your petition is as accurate as possible so you don’t experience interruptions to your case, like a dismissal? Cases filed by experienced attorneys have the best chance of a hassle-free discharge. See if our dedicated Arizona bankruptcy team is the right fit for you with no risk or obligation. Schedule your free consultation with Chapter Bankruptcy Lawyers today at 480-405-1010 to get started today.