A pizza chain operating in 28 US states is expected to file for bankruptcy as part of a turnaround plan.
MOD Pizza, which operates over 500 stores, is looking to improve their financial situation of the chain with a bankruptcy filing.
Seattle-Born Chain
The chain grew out of Seattle, where it was founded in 2008.
It has since expanded to 512 locations in 28 states across the country.
Made on Demand
MOD Pizza stands for Made on Demand Pizza, the name giving a clue as to what customers can expect from the store.
The brand emphasizes customizable, quick pizzas which customers can see being made by the workers as they wait.
Ominous Portents
There have been several signs recently that the business may already have been struggling.
In the first quarter of the year, MOD Pizza shuttered 26 locations.
Once a Hot Prospect
The chain was once a popular, growing brand that attracted serious investor interest.
In 2019, it received a $150 million investment and was filed for an initial public offering as recently as 2021.
Expansion Across The US
After its founding in Seattle, it has since expanded across a number of states.
MOD Pizza now boasts over 100 locations in Texas and also 46 stores in California.
Troubles Began During COVID-19
Like so many other businesses, it was hit hard by the effects and responses of 2020’s global pandemic.
It had entered a period of rapid expansion and made “unfavorable lease and site decisions,” according to a MOD Pizza spokesperson.
Store Underperformance
The spokesperson also cited underperformance of their remaining restaurant locations as another contributing factor to the company’s current struggles.
44 company-owned locations have closed already this year, due to “sustained underperformance despite best efforts of the restaurant teams.”
No Official Confirmation
Despite reports emerging, there is no official confirmation that the company is seeking to file for bankruptcy.
MOD Pizza’s leadership are still looking at different methods to improve the restaurant chain’s financial outlook and have stated that it is “inappropriate to speculate about an outcome” in regard to bankruptcy in particular.
Things Looking Up?
Despite the situation, there were some notes of bullishness in MOD Pizza’s official statement.
The spokesperson noted that “we have a brand guests love, a passionate team, and a solid turnaround plan underway that is making progress.”
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Sbarro filed for bankruptcy in 2011 and again in 2014. The chain, founded in 1956, struggled with the decline of shopping mall traffic.
Sbarro closed 155 locations in North America during its 2014 bankruptcy. The company emerged from bankruptcy in 2014 with 800 locations, down from its peak of 1,000.
Pizzeria Uno: Deep Dish Dreams Crushed
Pizzeria Uno, inventor of Chicago deep-dish pizza, filed for bankruptcy in 2010. The chain, founded in 1943, faced $176 million in debt at the time.
Uno closed 16 restaurants and restructured $142 million in debt. The company rebranded as Uno Pizzeria & Grill after emerging from bankruptcy.
Bertucci’s: Brick Oven Pioneer’s Flame Fizzles Out
Bertucci’s filed for Chapter 11 bankruptcy in 2018. The Massachusetts-based chain, founded in 1981, closed 15 underperforming restaurants.
Bertucci’s sold its assets for $20 million to Earl Enterprises. The company emerged with 58 locations, down from its peak of 108.
Giordano’s: Stuffed Pizza Giant’s Financial Crumble
Giordano’s, famous for Chicago stuffed pizza, filed for bankruptcy in 2011. The chain, founded in 1974, faced $45 million in debt.
Giordano’s was purchased by Victory Park Capital for $61.6 million. The company has since expanded to 70 locations across 9 states.
Round Table Pizza: Knight’s Pizza Kingdom Besieged
Round Table Pizza filed for Chapter 11 bankruptcy in 2011. The California-based chain, founded in 1959, struggled with $160 million in debt.
Round Table closed 22 company-owned restaurants and renegotiated leases. The company emerged from bankruptcy in 2012 and now operates over 400 locations.
