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 with 512 locations across the country 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. It currently has 32 locations in Oregon.
Earlier this year, MOD shut down more than two dozen restaurants, one of which was in Oregon. 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, announce bankruptcies.