Popular nationwide pizza chain set to file for bankruptcy in days – sparking fears its 500 restaurants could close
A popular pizza chain is the latest to face financial trouble amid rising costs and declining customer base.
Mod Pizza is preparing to file for bankruptcy as early as next week, sources said Bloomberg on Wednesday.
The plans are not yet final and may still change, according to an insider.
“We are working hard to improve our capital structure and are exploring all options to achieve this,” a Mod Pizza spokesperson said in an emailed statement.
Known for its custom-made pizzas and salads, Mod Pizza has more than 500 locations in the US.
Mod Pizza has 500 locations across America
Bloomberg reports that the company will file for bankruptcy as early as next week
In the first three months of the year, 26 transactions had already been closed, the bosses reported in the most recent quarterly figures.
Mod Pizza was founded in Seattle in 2008 and quickly expanded to the rest of America.
In 2019, the company received a $150 million investment from Clayton Dubilier & Rice and also filed for an initial public offering in 2021.
Restaurants are having an increasingly difficult time this year.
They have raised their prices over the past two years as they pass on higher costs to customers, but these price increases have led to a drop in visitors.
Larger chains like Applebee’s, TGI Fridays and Boston Market have all recently closed their restaurants, as have smaller chains like BurgerFi.
Red Lobster filed for bankruptcy in May and closed nearly 100 restaurants.
Chains have been hit hardest in California, where the minimum wage for fast-food restaurants rose to $20 an hour on April 1. In early June, Mexican chain Rubio’s closed 48 locations in the state and also filed for bankruptcy.
Two weeks ago it was announced that nearly 150 Pizza Hut restaurants would close their doors due to an ongoing financial dispute with one of the largest franchisees.
On June 14, 15 stores in Indiana suddenly closed, leaving employees and customers stunned.
Another 129 states in Illinois, Georgia, South Carolina and Wisconsin are on the verge of closing as a result of the dispute.