Mod Pizza is receiving a lifeline through an acquisition by Elite Restaurant Group, which could help the pizza chain avoid filing for bankruptcy.
The Seattle-based pizza chain announced earlier this week that it has been acquired by the Southern California-based company for an undisclosed amount. Mod Pizza stated that this deal would enable it to better manage its capital structure.
In early July, the Wall Street Journal reported that the chain was seeking a buyer to come up with alternative financial solutions, based on information from knowledgeable sources.
Mod Pizza, known for its “build your own” pizza model, operates over 500 locations across the U.S., with a significant presence in states like Texas, Washington, and California. Despite its large footprint, the chain has had to close several locations, as first reported by KTLA.
Like many casual dining chains that struggled during the peak of the Covid-19 pandemic, Mod Pizza’s latest strategic move could be its way to remain operational.
Michael Nakhleh, President and owner of Elite Restaurant Group, said in a statement that Mod “has an outstanding culture and passionate, loyal guests and employees.” He added, “We recognize the inherent value this represents and look forward to helping Mod write the next chapter in its history.”
Elite Restaurant Group, based in Los Angeles, is known for acquiring and revitalizing financially troubled restaurant brands. The company has previously taken over chains like Slater’s 50/50, Gigi’s Cupcakes, as well as pizza chains Project Pie and Patxi’s Pizza.