A popular pizza chain on the brink of bankruptcy has been saved, but it’s unclear whether any restaurants will remain closed.
For two weeks, there was speculation that Mod Pizza would file for Chapter 11 bankruptcy. The chain has 512 locations in 28 US states.
It has now announced that it has a new owner: Elite Restaurant Group, a Los Angeles-based company that has a history of buying underperforming chains.
Mod is Elite’s biggest acquisition yet. Its portfolio includes brands such as burger chain Slater’s 50/50, family restaurant Marie Callender’s, Patxi’s Pizza and Greek chain Daphne’s.
“Mod has an exceptional culture and passionate, loyal guests and employees,” Elite Restaurant Group’s Michael Nakhleh said in a statement.
Mod Pizza has 512 locations in the United States. It was rumored to be considering bankruptcy.
“We recognise the inherent value this represents and look forward to helping the MOD write the next chapter in its history.”
Beth Scott, Mos’ chief executive, said the chain “is a beloved brand with a huge following.”
“We are excited to work with Elite Restaurant Group to strengthen the future of MOD,” he added.
Mod, known for its custom pizzas and salads, closed 44 “underperforming” restaurants this year.
There were further fears when it emerged on July 3 that Mod was preparing to file for bankruptcy, according to Bloomberg.
Mod Pizza was founded in 2008 in Seattle and soon expanded to Washington and then across the United States.
It has the most locations in Texas, with 113. The next most is in its home state of Washington, with 72. Neighboring Oregon has 32, and California, further down the coast, has 46.
Restaurants have been struggling more and more this year.
They have been raising prices over the past two years, in order to pass on the higher costs to customers, but these increases have led to a drop in the number of visitors.
Larger chains like Applebee’s, TGI Fridays and Boston Market have recently closed restaurants, as have smaller chains like BurgerFi.
Elite Restaurant Group has purchased MOD Pizza
Red Lobster filed for bankruptcy in May and also closed nearly 100 restaurants.
Chains have been hardest hit in California, where the minimum wage for fast-food restaurants rose to $20 an hour starting April 1. In early June, Mexican chain Rubio’s closed 48 locations in the state and also filed for bankruptcy.
Two weeks ago, it emerged that nearly 150 Pizza Hut restaurants were on the verge of closing due to an ongoing financial dispute with one of its major franchisees.
On June 14, 15 branches in Indiana abruptly closed, leaving staff and customers stunned.
Another 129 in Illinois, Georgia, South Carolina and Wisconsin are on the verge of closing as part of the dispute.
