Beloved San Francisco Italian Eatery Fights to Stay Afloat Amid Financial Struggles

Two of San Francisco’s most cherished Italian restaurants, known for their wood-fired pizzas and welcoming neighborhood ambiance, have filed for Chapter 11 bankruptcy—yet the owners remain optimistic and committed to keeping the ovens hot and the doors open.

Fiorella, a local favorite with four locations across the city, recently initiated bankruptcy proceedings for its Richmond District and Sunset District outlets. While the word “bankruptcy” often signals closures and layoffs, the restaurant’s leadership is reassuring loyal patrons that this is a strategic move aimed at financial recovery, not retreat.

A Strategic Step Toward Financial Restructuring

The Chapter 11 bankruptcy filings were submitted separately for each location, as they are managed by distinct limited liability corporations. This type of filing allows a business to continue operations while reorganizing its financial obligations.

The Richmond District location at 2339 Clement Street, operated by Project Pizza, LLC, reported debts exceeding $1 million. These liabilities include unpaid balances to wine and meat suppliers as well as the California Department of Tax and Fee Administration. According to court documents, this location has approximately $78,855 in assets.

Meanwhile, the Sunset District location at 1240 Ninth Avenue, managed by Project Pizza Sunset LLC, filed for bankruptcy on April 1. Its filing disclosed assets totaling $499,481.74, with liabilities ranging between $500,000 and $1 million.

Despite the financial hurdles, co-owner Brandon Gillis insists there are no plans to shut down either location. “These are calculated decisions made to protect our team and continue serving our community,” he explained.

A Legacy Built on Local Love and Culinary Passion

Fiorella was founded nearly a decade ago by Boris Nemchenok and Brandon Gillis in the Richmond District. Since then, it has expanded to include two other locations—one in Russian Hill on Polk Street and a newly opened restaurant in Noe Valley on 24th Street. Each venue is operated under a separate business entity, and as of now, those locations remain financially unaffected.

Known for their modern twist on classic Italian fare, Fiorella's restaurants offer a carefully curated menu featuring Neapolitan-style pizzas, handmade pastas, and rotating seasonal specials. The rustic decor and community-driven vibe have made it a go-to dining spot for locals and tourists alike.

Hope Amid the Hardships

The filings come amid broader challenges facing the San Francisco restaurant scene, from rising operational costs to shifting dining habits. However, Gillis remains upbeat about the future.

“I believe in San Francisco,” he said. “There’s a lot of passion in this city, and we’re starting to see a revival. This isn’t the end—it’s a new chapter.”

As the team works through the bankruptcy process, Fiorella continues to operate its restaurants, serve its signature dishes, and welcome guests. For many San Franciscans, the smell of wood-fired pizza and the hum of lively conversation will carry on—a hopeful sign that even through financial adversity, the city’s culinary heartbeat endures.