In This Story
Mod Pizza is getting a lifeline – and its agreement to be bought by Elite Restaurant Group, could help it stave off filing for bankruptcy.
The Seattle, Washington-based pizza chain said earlier this week that it had been bought by the Southern California based company for an undisclosed sum. Under the agreement, Mod said that the deal would help it get a handle on its capital structure.
In early July, the Wall Street Journal, citing individuals with knowledge of the situation, said the chain was searching for buyer that could help it come up with alternative financial options.
Mod, which boasts a “build your own” pizza model, has over 500 locations across the U.S. The chain’s footprint is large in states such as Texas, Washington, and California. But even so, it has had to close dozens of locations, KTLA first reported.
Like other casual chains that struggled during the height of the Covid-19 pandemic, Mod’s latest move could be one way it continues operating.
Elite Restaurant Group President Michael Nakhleh said in a statement that Mod “has an outstanding culture and passionate, loyal guests and employees.” Nakhleh, who is also Elite’s owner added that,“we recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
The Los Angeles, California-based Elite is well known for scooping up and saving restaurant brands in financial trouble. Some chains the company has collected include burger maker Slater’s 50/50, Gigi’s Cupcakes, as well as pizza based chains Project Pie and Patxi’s Pizza.