Mod Pizza is receiving a lifeline through an acquisition deal with Elite Restaurant Group, which could help it avoid filing for bankruptcy.
The Seattle-based pizza chain announced earlier this week that it had been acquired by the Southern California company for an undisclosed amount. Mod Pizza stated that this agreement would aid in managing its capital structure.
In early July, the Wall Street Journal reported that the chain was seeking a buyer to provide alternative financial solutions, citing sources familiar with the situation.
Mod Pizza, known for its “build your own” pizza model, operates more than 500 locations across the U.S. with a significant presence in states like Texas, Washington, and California. Despite its extensive footprint, the chain has had to shut down dozens of locations, as reported by KTLA.
Similar to other casual dining chains that faced challenges during the peak of the Covid-19 pandemic, Mod’s latest move might be crucial for its continued operation.
Elite Restaurant Group President Michael Nakhleh praised Mod for its outstanding culture and dedicated, loyal customers and employees. Nakhleh, who also owns Elite, expressed optimism about the acquisition, stating, “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
Based in Los Angeles, Elite Restaurant Group is known for rescuing distressed restaurant brands. The company’s portfolio includes Slater’s 50/50, Gigi’s Cupcakes, as well as pizza chains Project Pie and Patxi’s Pizza.