Mod Pizza is receiving a lifeline through an acquisition by Elite Restaurant Group, a move that could help avert the company’s potential bankruptcy.
The Seattle-based pizza chain announced earlier this week that it has been purchased by the Southern California company for an undisclosed amount. The agreement is expected to assist Mod in managing its capital structure.
In early July, the Wall Street Journal reported, citing sources, that the chain was seeking a buyer to explore alternative financial strategies.
Mod, known for its “build your own” pizza model, operates over 500 locations across the U.S., with significant presence in states like Texas, Washington, and California. Despite its large footprint, the chain has closed dozens of locations, according to a report by KTLA.
Like many casual dining chains impacted by the Covid-19 pandemic, Mod’s latest move could be crucial for its continued operation.
Elite Restaurant Group President Michael Nakhleh praised Mod’s culture and its loyal guests and employees in a statement. Nakhleh, also the owner of Elite, added that the company recognizes the inherent value in Mod and looks forward to contributing to its next chapter.
Based in Los Angeles, Elite Restaurant Group is known for rescuing financially troubled restaurant brands. Its acquisitions include burger chain Slater’s 50/50, Gigi’s Cupcakes, Project Pie, and Patxi’s Pizza.