FANS of the popular Mod pizza can look for a new pizzeria from next week.
The fan-favorite restaurant has announced that it is preparing to potentially file for bankruptcy.
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Sources close to the Seattle-based pizzeria revealed that they could be filing a lawsuit as soon as next week, though the source noted that things could change.
“We are working diligently to improve our capital structure and exploring all options to do so,” said a Mod Pizza spokesperson. Bloomberg.
Another brand spokesperson, Rick Van Warner, said Restaurant business that the new fast food minimum wage played no role in the store closures.
According to Van Warner, the timing was just a coincidence.
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Van Warner said the affected stores were the chain’s “underperforming” ones.
“Despite the efforts of the teams and managers of these restaurants, they have not been performing well for some time and that is just part of the business,” he said.
“Sometimes you need to evaluate the performance of your assets.”
US Sun has reached out to Mod for additional comment.
Mod first opened its doors in 2008 and had an impressive 500 stores across the US.
In 2019, Mod received a $150 million investment from Clayton Dubilier and Rice and filed paperwork for an initial public offering in 2021.
While the exact cause of the filing has not yet been revealed, Mod joins the long list of casual dining chains that have sought bankruptcy protection due to rising costs caused by inflation and a pullback in consumer spending.
A notable example would be Red Lobster’s sudden decision to declare bankruptcy in May.
The company filed for Chapter 11 bankruptcy on May 13, 2024, shocking many of its employees and customers.
In the process, the company stated that it would sell its assets to help restructure the company.
Mod Pizza locations closed in the US
Below, find a complete list of the number of Mod Pizza locations that have closed in the US.
- California: 5
- Texas: 3
- Illinois: 3
- Pennsylvania: 3
- Washington DC: 3
- Wisconsin: two
- Washington State: two
- Florida: 1
- Oklahoma: 1
- Virginia: 1
- Oregon: 1
“This restructuring is the best path forward for Red Lobster,” said CEO Jonathan Tibus.
“This allows us to face various financial and operational challenges and emerge stronger and more focused on our growth.”
“Together, we have a lot to root for”, a statement released by the company to read on Facebook shortly after the news broke.
“We are here and ready to continue creating memories with you,” he continued.
In the lawsuit, the seafood board also claimed it was $1 billion in debt.
Since then, more than 100 Red Lobster stores have closed their doors.
Many company executives have said that Red Lobster’s footprint is “bloated.”
Another notable example would be the popular Hooters chain, which recently closed 44 of its stores across the country.
The brand released a statement saying the closures were due to “pressure from current market conditions.”
“Ensuring the well-being of our team is our priority in these rare instances,” Hooters said in a statement released by USA today.
“This 41-year-old brand remains highly resilient and relevant. We look forward to continuing to serve our guests at home, on the go and in our restaurants here in the U.S. and around the world.”
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This story originally appeared on The-sun.com read the full story
