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MOD Pizza, the popular fast-casual pizza chain, is reportedly exploring a potential bankruptcy filing as soon as next week as a way to improve its financial health. This news comes after the company closed 26 locations earlier in 2024. And an additional undisclosed amount of locations closed recently, in at least 12 states.
Since Mod Pizza opened their first location in 2008, they’ve expanded across 28 states with over 500 locations, and had plans to stand at over 1,000 restaurants strong.
While a final decision hasn’t been made, sources say the filing could happen as early this month. MOD Pizza is currently working with legal and financial advisors to navigate its options, which may include finding a buyer.
The story remains largely unchanged from the other floundering chains, as MOD Pizza like the others, has faced several challenges in recent years. The company’s initial public offering (IPO) planned for late 2021 ultimately fell through, and rising labor costs and a competitive fast-casual pizza market have squeezed profits.
At this point, it’s unclear how a potential bankruptcy would affect MOD Pizza’s day-to-day operations. The company has over 500 locations across the US and Canada, and bankruptcy filings often involve reorganization rather than complete closure.
Future of MOD Pizza
MOD Pizza is a major player in the fast-casual pizza segment, and just the latest in a string of chains making similar moves by closing locations, and filing for bankruptcy. Will the the bankruptcy restructuring be the path they need to stabilize its finances and ensure its future success? Only time will tell.
