Pizza chain reportedly on brink of bankruptcy

A national fast-casual pizza chain is exploring a potential bankruptcy filing as the company looks for a buyer, according to several reports.

MSN reports people familiar with MOD Pizza say the Seattle chain has hired legal and financial advisers to work on a possible sale of the business or bankruptcy filing.

“We’re working diligently to improve our capital structure and are exploring all options to do so. Since this is an ongoing process, it would be inappropriate to speculate about an outcome,” a MOD representative shared with Nation’s Restaurant News in a statement.

The restaurant industry publication said at the end of 2023 MOD operated 553 locations, a 4.1% increase over 2022. It also noted that up until recently the chain was doing well and grew sales by 5.7% last year, to $699.2 million, according to Technomic data.

MOD was founded in 2008 as part of a wave of build-your-own pizza places including Blaze.

Earlier this year, MOD shut down more than two dozen restaurants in 11 states and the District of Columbia. It also appointed Beth Scott as its new CEO after cofounder Scott Svenson stepped down from the position after 15 years.

The news comes as several restaurant chains including Red Lobster and Tijuana Flats announce bankruptcies. Locally, MOD operates in York, Lancaster and Lebanon counties.