Mod Pizza has found a lifeline through its agreement to be acquired by Elite Restaurant Group, potentially avoiding bankruptcy.
The Seattle-based pizza chain announced earlier this week that it had been bought by the Southern California-based company for an undisclosed amount. Mod stated that this deal would help it manage its capital structure more effectively.
In early July, the Wall Street Journal reported, citing sources familiar with the matter, that Mod Pizza was looking for a buyer to provide alternative financial solutions.
Mod Pizza, 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. However, it has had to close dozens of locations, according to KTLA.
Like many casual dining chains that struggled during the Covid-19 pandemic, this latest move by Mod could be a strategy to continue its operations.
Elite Restaurant Group President Michael Nakhleh said in a statement that Mod “has an outstanding culture and passionate, loyal guests and employees.” Nakhleh, who is also Elite’s owner, added, “we recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
Elite, based in Los Angeles, is known for rescuing financially troubled restaurant brands. The company has previously acquired chains such as Slater’s 50/50, Gigi’s Cupcakes, and pizza chains Project Pie and Patxi’s Pizza.