"Every year brings its share of business bankruptcies, and most of them go unnoticed. A few do catch the eye, if they center around high-profile companies or CEOs, or - especially - if they involve brands we interact with every day. That's probably why bankruptcies in food-oriented businesses are so memorable, because we all eat every day. The restaurant industry, for example, is notoriously tough, and definitely saw its share of bankruptcies in 2025."
"Modesto-based cheesemaker Rizo Lopez foods has been a big player in that market, selling its products under a range of brands including its own brands (Don Francisco, Tio Francisco, Rizo Brothers, Santa Maria, and many more) as well as filling orders as Whole Foods' 365 brand. Unfortunately for Rizo Lopez and its customers, the company was forced to recall massive quantities of cheese, and cease operations, after the CDC traced a long-running listeria outbreak to its production facilities."
Bankruptcies in food and beverage in 2025 ranged from niche startups to longstanding iconic brands, and many captured attention because consumers interact with these brands daily. The restaurant industry remained particularly vulnerable and experienced numerous closures. Food safety failures can trigger large-scale recalls and shutdowns; fresh cheeses such as Mexican-style queso fresco are especially susceptible to listeria contamination. Modesto-based Rizo Lopez Foods sold under many brands and as a supplier for Whole Foods' 365 line, but a long-running listeria outbreak spanning ten years and 11 states caused 26 illnesses and two fatalities. After massive recalls and halted operations, the company announced it shut down in 2025.
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