Michelle ThompsonMOD Pizza, known for its customizable individual pizza pies, has announced a new owner in an effort to avoid potential bankruptcy. Elite Restaurant Group has acquired MOD, though specific financial details of the transaction were not disclosed.
Following recent reports suggesting MOD Pizza was contemplating bankruptcy, the company spokesperson emphasized efforts to implement a turnaround plan. Rick Van Warner stated, “We’re actively working to enhance our capital structure and exploring all available options.”
MOD Pizza aims to steer clear of the fate seen by other fast-casual restaurant chains struggling amidst inflationary pressures that have deterred consumers from dining out. For instance, Red Lobster filed for Chapter 11 bankruptcy in May, citing over $1 billion in debt and limited cash reserves.
Established in Seattle in 2008, MOD Pizza offers a menu boasting 40 toppings and eight sauces for its customizable pizzas. The chain operates over 540 locations across the United States and Canada.
Earlier this year, MOD appointed Beth Scott as its new CEO, with co-founder Scott Svenson transitioning to the role of executive chairperson.
In response to current challenges, MOD has closed 44 of its restaurants as of July 3rd, reflecting strategic adjustments in its operational footprint.
