Famous American bakery files for bankruptcy and will close 21 stores: it filed for bankruptcy protection under a popular law.

Noble Bread, an artisan bakery in Phoenix, Arizona, known for its traditional production and use of local ingredients, announced its bankruptcy on May 29.

The company filed for bankruptcy protection under Chapter 11, Subchapter V, of the United States Bankruptcy Law , a legal framework that allows small companies to reorganize financially.

The decision will result in the immediate closure of 21 stores and jeopardizes the brand's continued operations after more than a decade.

Founded in 2013 by Jared Allen, Noble Bread has established itself as a benchmark for sourdough bread in the American Southwest.

With a focus on quality and additive-free production, the company gained recognition for its traditional techniques. In its early days, it championed baking practices that embraced the use of local grains without preservatives, which allowed it to gain a loyal customer base in the Valley of the Sun.

However, the post-pandemic economic context severely impacted independent businesses like this one. Rising input costs, evolving consumer behavior, and poor accounting management worsened the company's financial situation.

According to Jason Raducha, the current owner, these factors made the business model unviable to sustain.

“ We strive to maintain the quality that has always distinguished us, but the business model was simply no longer viable in this economic environment ,” Jared Allen said at the time.

The parent company, Noble Goodness LLC, voluntarily filed for bankruptcy in the District Court of Arizona.

The process is carried out under Subchapter V of Chapter 11, a mechanism that allows small businesses to reorganize without having to immediately liquidate their assets.

Speaking to the Phoenix Business Journal, Raducha said the move was “strategic and not forced,” with the goal of seeking alternatives to maintain operations.

The confirmed closure of 21 stores directly affects dozens of employees and leaves a customer base that has grown accustomed to their products for more than a decade in uncertainty.

“ This business has been a passion, a family, and a source of pride. But current economic challenges have made it unsustainable to continue ,” the company said in a statement released on social media.

Allen also expressed concern about the future of the staff: "We don't know the future of the employees who have worked with us for years," he lamented.

Among the options the company is considering to continue operating are a possible merger with another company, the addition of new investors , or a significant reduction in its operating scale.

The company has not confirmed the fate of its remaining stores, nor whether they will be allowed to remain open while the legal proceedings progress.

Noble Bread reported liabilities between $1 million and $10 million, highlighting its fragile financial situation. Despite the support of its local community and recognition in the food scene , it failed to overcome the adverse conditions that have also forced other food chains to close or retreat.

Cases like Hooters and Domino's have shown that even major brands have not been immune to the economic pressures of the post-pandemic environment.

*This content was written with the assistance of artificial intelligence, based on publicly available information released to media outlets. It was also reviewed by a journalist and an editor.