MOD Pizza Acquired by Elite Restaurant Group to Avert Bankruptcy
MOD Pizza, the popular fast-casual chain known for its customizable pizzas, announced on Wednesday that it has been acquired by Elite Restaurant Group in a strategic move aimed at preventing or delaying a potential bankruptcy filing.
While the financial terms of the acquisition were not disclosed and little information about Elite Restaurant Group is publicly available, the deal comes after recent reports indicated that MOD Pizza was considering bankruptcy. A company spokesperson, Rick Van Warner, previously stated that MOD was actively working on a turnaround plan to improve its capital structure and exploring all available options.
“We’re working diligently to improve our capital structure and are exploring all options to do so,” Van Warner said.
The fast-casual dining sector has been struggling as inflation-weary customers cut back on dining out. MOD Pizza hopes to avoid the same fate as other chains, such as Red Lobster, which filed for Chapter 11 bankruptcy in May with over $1 billion in debt and less than $30 million in cash.
Founded in 2008 in Seattle, MOD Pizza offers a wide variety of customizable pizzas with 40 toppings and eight sauces. The company operates over 540 locations across the United States and Canada.
Earlier this year, in January, MOD Pizza announced the appointment of Beth Scott as the new CEO. Scott Svenson, who co-founded MOD with his wife Ally, transitioned to the role of executive chairperson. Svenson had indicated in a statement that he anticipated eventually stepping back from daily operations.
In addition to the acquisition, a MOD spokesperson confirmed on July 3 that the chain had closed 44 restaurants as part of its restructuring efforts.
