Popular fast-casual pizza chain Mod Pizza could soon be filing for bankruptcy — following in the footsteps of several other well-known US restaurants, according to a new report.
The company, which has locations in 28 states, is preparing a potential bankruptcy filing and could enter court protection as soon as next week, sources told Bloomberg Wednesday.
However the situation is fluid and plans could change, the sources, who asked not to be identified to share the insider knowledge, told the publication.
The pizza joint known for its made-on-the-spot, customizable personal pizzas has more than 500 locations across the country since opening its first restaurant in Seattle in 2008.
Mod Pizza earned $700 million in system sales by last year and was once one of the country’s fastest-growing restaurant chains and in 2019, planned to operate 1,000 locations across the US within five years — by the current year, according to Restaurant Business.
Instead, the chain — which named a new CEO in January, replacing cofounder Scott Svenson — closed 26 underperforming locations in April and more appear to have shut their doors since then, the trade publication reported.
A representative for Mod Pizza didn’t immediately respond when reached by email.
The take-out pizzeria is the latest restaurant chain to struggle financially.
Red Lobster filed for bankruptcy in May and the beloved Mexican chain Rubio’s filed a bankruptcy petition last month.
Many more chains have shuttered locations all over the US as they try to stay afloat in the current economy.
Source link
