Happy Joe's Has Filed For Bankruptcy, But Not In Iowa

Happy Joe's Pizza has filed for Chapter 11 bankruptcy protection this month.

The filing is actually in Delaware, according to WHBF, and was filed on September 2nd.

The release from Happy Joe's says that CEO Tom Sacco "filed a plan of reorganization on two of the four corporate entities".

Of course, this comes not long after the Happy Joe's closures were announced for Maquoketa and Eldridge. The Happy Joe's on Rockingham Road closed just last month.

But Happy Joe's shared a link on Facebook on Monday that they're not planning to leave the QC anytime soon. You have time to enjoy your taco pizza.

The company says that most of the Happy Joe's locations are "highly profitable". The bankruptcy filing shows that Happy Joe's has $1,908,481.29 in total assets, which is down from last year's $2,090,675.43.

WHBF reports that the filing also shows a big drop in cash in less than a year. In October 2021, they had $2,141,948.11. On July 31st, they only had $290,528.84. A difference of nearly $1.9 million.

Sacco said in the news release:

While nobody wants to put a company through a restructuring, it was the right thing to do for the long-term health and continued growth of the iconic Happy Joe’s brand. When I arrived at Happy Joe’s, I figured out really quick where the problems were. With COVID wreaking havoc on our industry, expensive sale-leasebacks of company-owned restaurants taking place just prior to my arrival, a significant increase in food costs exacerbated by supply chain issues, and an ever more difficult labor market, our challenges kept increasing exponentially.

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