Unexpected Closures Signal Trouble

Mod Pizza, celebrated for its rapid expansion and popularity across the United States, has recently faced significant operational challenges. Earlier this year, the company made the difficult decision to close 27 of its locations in over 10 states and Washington D.C., citing underperformance. This move has raised concerns about the financial health of the once-thriving pizza chain.

Bankruptcy on the Horizon?

According to Bloomberg, inside sources have revealed that Mod Pizza is seriously considering filing for bankruptcy. With preparations reportedly underway, the company might seek bankruptcy protection as soon as this week, though decisions remain fluid and subject to change. The pizza chain has yet to officially confirm these speculations.

Company Exploring All Options

In response to inquiries, Mod Pizza has remained tight-lipped about its financial predicaments but has acknowledged its efforts to reassess its capital structure. A company spokesperson emphasized Mod's dedication to its brand, team, and the execution of a turnaround plan that is already showing signs of progress. "Exploring all options" is the company's current stance as it seeks a viable path forward amidst ongoing financial challenges.

From Rapid Growth to Financial Strain

Mod Pizza's potential bankruptcy filing marks a significant shift for a company that was once among the fastest-growing in the U.S. restaurant industry. With a business model centered around customizable pizzas and a fast-casual dining experience, Mod had ambitious plans for expansion, including reaching 1,000 locations within five years—a goal set in 2019 after securing $160 million in funding. Despite these aspirations, the company's growth has stalled, with the current count standing at 512 locations nationwide.

A Tough Year for Restaurant Chains

Should Mod Pizza proceed with bankruptcy, it would join a list of restaurant chains that have succumbed to the pressures of rising costs and industry changes in recent times. Notable bankruptcies this year include Melt Bar & Grilled, Red Lobster, Rubio's Coastal Grill, Tijuana Flats, and Sticky's Finger Joint, all of which have cited similar challenges affecting their operations and financial stability.

The situation at Mod Pizza serves as a stark reminder of the volatile nature of the restaurant industry, where even the most popular and fast-growing chains are not immune to financial turmoil.