A pizza chain with over 500 U.S. locations is working on “a turnaround plan” amid multiple reports that the company is considering filing for bankruptcy, a representative told Nexstar.
Bloomberg reported last week that MOD Pizza, which operates restaurants in 28 states, may file for bankruptcy protection in the coming days, citing a source claiming to be familiar with the company’s plans. The Wall Street Journal shortly afterward said insiders had informed the outlet of the specific legal and financial firms hired to discuss the chain’s options.
MOD Pizza currently has 512 locations in 28 states, with the most in Texas and Washington. It has 46 locations in California.
In an emailed statement shared with Nexstar on Monday, a spokesperson for MOD Pizza said it would be “inappropriate to speculate about an outcome” when asked about a bankruptcy filing but confirmed that executives are looking to “improve” the chain’s financial situation.
“We have a brand guests love, a passionate team, and a solid turnaround plan underway that is making progress,” a spokesperson said in an emailed statement. “We’re working diligently to improve our capital structure and are exploring all options to do so.”
Additional details will be made available in the coming days, the spokesperson added.
MOD Pizza, founded in Seattle in 2008, has already closed 44 company-owned restaurants this year, the company confirmed. Most had exhibited “sustained underperformance despite best efforts of the restaurant teams,” MOD Pizza’s spokesperson said.
“A few were closed due to unfavorable lease and site decisions made during a period of rapid expansion prior to the pandemic,” he added.
Several years ago, however, MOD Pizza was said to be one of the fastest-growing restaurant chains in the country, after opening a total of 110 of its then-200-plus locations in 2017 alone, Business Insider reported. By May 2021, there were 500 MOD Pizza locations in the U.S., a milestone the company celebrated with free individual pizzas for each location’s first 50 customers.
“Today the MOD Squad is 10,000+ strong and growing, and we’ve never been more excited about what lies ahead for MOD!” Scott and Ally Svenson, co-founders of MOD Pizza, said at the time.