Mod Pizza is receiving a lifeline through its agreement to be acquired by Elite Restaurant Group, an arrangement that could help prevent the company from filing for bankruptcy.
The Seattle, Washington-based pizza chain announced earlier this week that it has been purchased by the Southern California-based company for an undisclosed amount. According to Mod, the deal is expected to assist in managing its capital structure.
In early July, the Wall Street Journal reported, citing sources familiar with the matter, that Mod Pizza was searching for a buyer to help it explore alternative financial options.
Mod Pizza, which operates a “build your own” pizza model, has over 500 locations across the United States, with significant presences in states like Texas, Washington, and California. However, despite its broad footprint, the chain has been forced to close dozens of locations, as first reported by KTLA.
Like many casual dining chains that struggled during the peak of the Covid-19 pandemic, Mod’s latest move could be a strategy to ensure its continuity.
Elite Restaurant Group President Michael Nakhleh stated that Mod has “an outstanding culture and passionate, loyal guests and employees.” Nakhleh, also the owner of Elite, added, “We recognize the inherent value this represents and look forward to helping Mod write the next chapter in its history.”
The Los Angeles, California-based Elite Restaurant Group is known for acquiring and reviving restaurant brands in financial distress. The company has previously taken over chains such as Slater’s 50/50, Gigi’s Cupcakes, Project Pie, and Patxi’s Pizza.