Popular fast-casual pizza chain Mod Pizza may soon follow several other well-known US restaurants into filing for bankruptcy, according to a new report.
The company, which has operations in 28 states, is preparing to file for bankruptcy and could seek court protection as early as next week, the people said. He told Bloomberg Wednesday.
But the situation is fluid and plans are subject to change, a source who asked not to be identified in order to share inside information told the publication.
The pizza chain, known for its customizable, made-to-order personal pizzas, has expanded to more than 500 locations across the US since opening its first restaurant in Seattle in 2008.
Mod Pizza had system sales of $700 million as of last year and was once one of the fastest-growing restaurant chains in the United States, with plans in 2019 to open 1,000 locations across the U.S. within five years. Restaurant business.
The chain appointed a new CEO to replace co-founder Scott Svenson in January and closed 26 underperforming stores in April, with more closures likely to follow since then, according to industry reports.
A Mod Pizza representative did not immediately respond to an email message.
The take-out pizza joint is the latest restaurant chain to hit financial difficulties.
Red Lobster filed for bankruptcy in May, and popular Mexican food chain Rubio’s also filed for bankruptcy last month.
Many chains are closing stores across the US as they struggle to survive in the current economic climate.
