Mod Pizza is set to receive a much-needed boost through its acquisition by Elite Restaurant Group, which could help the company avoid filing for bankruptcy.
The Seattle-based pizza chain announced earlier this week that it had been purchased by the Southern California company for an undisclosed amount. Mod Pizza stated that this agreement would assist in managing its capital structure.
Earlier in July, the Wall Street Journal reported, citing sources familiar with the situation, that the pizza chain was seeking a buyer to provide alternative financial solutions.
Known for its “build your own” pizza model, Mod Pizza operates over 500 locations across the United States, with significant presence in states like Texas, Washington, and California. Despite this, the chain has had to close dozens of locations, as first reported by KTLA.
Like other casual dining establishments that faced difficulties during the Covid-19 pandemic, Mod Pizza’s latest move is a strategy to keep the business afloat.
Elite Restaurant Group President Michael Nakhleh praised Mod Pizza’s culture and the loyalty of its guests and employees, noting the value these attributes bring. Nakhleh, who also owns Elite, added, “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
Los Angeles-based Elite Restaurant Group is known for acquiring and revitalizing struggling restaurant brands. Its portfolio includes burger chain Slater’s 50/50, Gigi’s Cupcakes, and pizza chains Project Pie and Patxi’s Pizza.