A Pizza Hut rival has collapsed into bankruptcy, owing banks and creditors up to $10 million (£7.49 million) — while its total assets amounted to just $50,000 (£37,446), court papers reveal.
Rogue Fare LLC, the franchisee behind five Mountain Mike's Pizza branches in Oregon, filed for Chapter 11 protection at the US Bankruptcy Court in Eugene on 1 July in a bid to reorganise its finances.
The scale of the shortfall is striking: a company reporting assets barely enough to cover a month's overheads is now grappling with debts up to 200 times that size.
The filing comes as one of pizza's most ambitious chains gambled on aggressive expansion at the very moment its rivals were retreating. While competitors such as Pizza Hut and Papa John's shut down hundreds of underperforming branches this year, Mountain Mike's Pizza pressed ahead — a strategy that has now left one of its franchisees drowning in debt.
According to court documents, the Medford, Ore.-based franchisee listed assets worth $50,000 (£37,446). However, the staggering aspect of the filing was the scale of its liabilities.
The company listed debts of between $1 million and $10 million (£750,000 and £7.49 million). Among its creditors were:
- First Bank of the Lake (more than $2.9 million or £2.17 million)
- First Internet Bank of Indiana (more than $1.5 million or £1.12 million)
- U.S. Small Business Administration (more than $120,000 or £89,000)
- Credit Associates Inc. (more than $63,000 or £47,000)
- Parafin-DoorDash (more than $13,000 or £9,000)
- Performance Food Group (more than $10,000 or £7,490)
The reason behind the bankruptcy filing was not disclosed in the filing with the Oregon Secretary of State Office.
As of 22 May 2024, Rogue Fare operated Mountain Mike's Pizza branches in Klamath Falls, Grants Pass, Roseburg and two locations in Medford.
Pizza Prices Driving Consumers Away
With inflation and current economic conditions continuing to affect the food industry, rising prices have become a major challenge. A 2025 Pizza Consumer Trend Report found the average cost of buying a pizza had risen to $17.61 (£13.19).
That represents an increase of roughly 3 per cent year on year and more than 15 per cent over the past five years, according to another report.
With pizza becoming more expensive, some consumers have chosen to cut back on purchases. As orders have declined, competitors have reassessed the performance of some locations to determine whether they remain viable or should be closed.
New Business Outlook Needed
Rising raw material costs and increasing day-to-day operating expenses have added to the pressures facing restaurant operators. The lingering effects of the COVID-19 pandemic have also continued to affect many businesses.
Many consumers have also tightened their belts as they look to reduce spending, prompting some to cut back on eating out.
Against that backdrop, Mountain Mike's Pizza continued expanding while several rivals reduced their footprints. Pizza Hut closed 250 underperforming branches during the first half of 2026, while Papa John's plans to close 200 branches by the end of the year.
The current owners of Mountain Mike's Pizza are Chris Britt and Ed St. Geme, who acquired the chain from private equity firm Levine Leichtman Capital Partners in 2022. At the time of the sale, Mountain Mike's operated 245 restaurants. The chain has since expanded to more than 300 locations.
From a business perspective, it is understandable why Mountain Mike's Pizza pursued expansion. However, Rogue Fare's bankruptcy filing illustrates the financial challenges that can emerge even as a brand continues to grow.
For now, Rogue Fare is seeking to reorganise its finances under Chapter 11 bankruptcy protection. The filing does not disclose what led to its financial difficulties or how it intends to proceed.
