The popular fast-casual pizza chain Mod Pizza may soon file for bankruptcy, according to a new report. Sources informed Bloomberg that the company, which operates in 28 states, is preparing for a potential bankruptcy filing and could seek court protection as early as next week. These plans are still in flux and could change, the sources added.
Mod Pizza, known for its customizable personal pizzas made on the spot, has more than 500 locations across the United States. The chain opened its first restaurant in Seattle in 2008. Last year, it earned $700 million in system sales and was once among the fastest-growing restaurant chains in the country. In 2019, the company had plans to operate 1,000 locations across the U.S. by this year, according to Restaurant Business.
However, the company has faced significant challenges recently. In January, Mod Pizza appointed a new CEO, replacing co-founder Scott Svenson. In April, the chain closed 26 underperforming locations, with more closures reported since then. Despite these measures, the company is still struggling financially.
Mod Pizza’s potential bankruptcy follows a trend seen among other well-known U.S. restaurant chains. Red Lobster filed for bankruptcy in May, and the beloved Mexican chain Rubio’s filed a bankruptcy petition last month. Numerous other chains have also shuttered locations across the country in an effort to remain viable in the current economic climate.
A representative for Mod Pizza did not immediately respond to requests for comment.