A Once Popular, Fast-Growing Pizza Chain Is Now Considering Bankruptcy
Mod Pizza, one of America's fastest-growing pizza chains, made headlines earlier this year when it abruptly shuttered 27 underperforming restaurants across at least 10 states and Washington D.C. The chain's financial woes may not be over just yet as circulating reports indicate the company is now mulling a bankruptcy declaration.
Citing anonymous sources, Bloomberg reported on July 3 that Mod Pizza is preparing a potential bankruptcy filing. One of the sources said the pizza chain could declare bankruptcy as early as this week. However, a final decision has yet to be made and their plans could change, the source added.
Mod Pizza did not immediately respond to our queries for confirmation and comment on these reports. However, a spokesperson told Restaurant Business Magazine that it's "exploring all options" to improve its capital structure (i.e. the combination of debt and equity a company uses to fund operations and expansion).
"We have a brand guests love, a passionate team and a solid turnaround plan underway that is making progress," the spokesperson told the publication. "We're working diligently to improve our capital structure and are exploring all options to do so. Since this is an ongoing process, it would be inappropriate to speculate on the outcome."
Bankruptcy considerations at any major restaurant chain would be a big deal. However, it would be an especially notable development for Mod considering that the company has flourished in recent years.
Known for its fast-casual setting and customizable, made-to-order pizzas, Mod Pizza was one of the fastest-growing restaurant chains in the United States for years, Restaurant Business Magazine reported. In 2019, the company announced that it had fundraised $160 million to fuel further growth and set an ambitious target to reach approximately 1,000 locations in the following five years. It had 433 restaurants in operation at the time.
However, Mod hasn't gotten much closer to its goal in the years since then. The chain's website currently lists 512 locations across the United States.
If Mod does end up resorting to bankruptcy, it would be the latest in a string of chains to do so in 2024. The gourmet grilled cheese chain Melt Bar & Grilled filed for Chapter 11 bankruptcy last month, blaming rising costs and "major shifts and changes in the service industry." Other companies that have declared bankruptcy this year include Red Lobster, Rubio's Coastal Grill, Tijuana Flats, and Sticky's Finger Joint.
Sign up for our newsletter!
