MOD Pizza announces new owner in attempt to stave off bankruptcy
By Ramishah Maruf, CNN
New York (CNN) — MOD Pizza, the fast-casual chain where diners can customize individual pizza pies, announced a new owner Wednesday in a move that could prevent or delay a bankruptcy filing.
Elite Restaurant Group has acquired MOD, though terms of the deal were not disclosed and little information about the company is available online.
After reports last week that the pizza chain was considering filing for bankruptcy, a company spokesperson said a turnaround plan was underway.
“We’re working diligently to improve our capital structure and are exploring all options to do so,” Rick Van Warner, MOD spokesperson, said at the time.
MOD Pizza wants to avoid the fate of other fast-casual restaurant chains, as the industry grapples with inflation-weary customers who are pulling back from purchases such as eating out. Red Lobster filed for Chapter 11 bankruptcy in May, saying it had more than $1 billion in debt and less than $30 million in cash on hand.
MOD, founded in 2008 in Seattle, advertises 40 toppings and eight sauces for its customizable pizzas. The company says there are more than 540 locations across the United States and Canada.
In January, MOD announced a new CEO, Beth Scott. Scott Svenson, who founded MOD in 2008 with his wife, Ally, became executive chairperson.
In a January statement, Svenson said he knew he “would eventually transition out of the daily operations of the business.”
A MOD spokesperson said on July 3 that the chain had closed 44 restaurants.
The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
