Mod Pizza is on the verge of bankruptcy

Mod Pizza, one of the fastest growing pizza chains in the United States, made headlines earlier this year when it 27 underperforming restaurants abruptly closed The chain’s financial woes may not be over yet, as reports are circulating that the company is now considering filing for bankruptcy.

Quoting anonymous sources, Bloomberg On July 3, Mod Pizza announced that it was preparing to file for bankruptcy. One of the sources said the pizza chain could file for bankruptcy as early as this week. However, no final decision has been made yet and their plans could change, the source added.

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Mod Pizza did not immediately respond to our requests for confirmation and comment on this information. However, a spokesperson said Magazine about catering companies that he “explores all options” to improve his capital structure (i.e. the combination of debt and equity that a company uses to finance its operations and expansion).

“We have a brand that customers love, a passionate team and a strong turnaround plan underway that is progressing,” the spokesperson told the publication. “We are working diligently to improve our capital structure and are exploring all options to achieve this. As this is an ongoing process, it would be inappropriate to speculate on the outcome.”

The bankruptcy of a major restaurant chain would be a serious matter. However, it would be a particularly notable development for Mod, given that the company has thrived in recent years.

Known for its fast-casual setting and customizable, made-to-order pizzas, Mod Pizza has been one of the fastest-growing restaurant chains in the United States for years, Magazine about catering companies reportedIn 2019, the company announcement The company had raised $160 million to fund its growth and set an ambitious goal of reaching about 1,000 locations over the next five years. It had 433 restaurants in operation at the time.

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However, Mod hasn’t made much progress toward its goal in the years since. The chain’s website currently lists 512 locations across the United States.

If Mod does eventually file for bankruptcy, it would be the last in a series of chains to do so in 2024. The gourmet grilled cheese sandwich chain Melt Bar & Grilled Files for Chapter 11 Bankruptcy Last month, companies blamed rising costs and “major changes in the service sector.” Other companies that have filed for bankruptcy this year include: red lobster, Rubio’s Coastal Grills, Tijuana ApartmentsAnd Sticky Finger Joint.6254a4d1642c605c54bf1cab17d50f1e

Zoe Strozewski