It’s a MOD world: Pizza company saved from bankruptcy, for the moment
Jul 11, 2024, 12:15 PM | Updated: 12:55 pm
MOD Pizza logos on their restaurant in Leicester Square. (Photo: Dave Rushen, Getty Images)
(Photo: Dave Rushen, Getty Images)
MOD Pizza, a national restaurant chain based in Bellevue, is being acquired by Elite Restaurant Group in Southern California, according to the trade publication Restaurant Business.
The deal aims to save MOD from impending collapse. The terms of the acquisition were not disclosed.
“MOD has an outstanding culture and passionate, loyal guests and employees,” Elite Restaurant Group President and Owner Michael Nakhleh said in a statement. “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
Nakhleh has sought out financially troubled restaurant brands. Their portfolio includes Patxi’s Pizza, Marie Callender’s and Daphne’s.
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“MOD is a beloved brand with a strong following,” MOD Pizza CEO Beth Scott said in a news release. “We’re excited to work with Elite Restaurant Group to strengthen MOD’s future.”
During the first quarter, the chain closed underperforming locations and provided severance to employees who could not be transferred to another location. According to Restaurant Business, the number of store closures was more than two dozen.
“We have occasionally closed units that are unprofitable, which is the normal course of business for any company our size,” the company said in a statement emailed to Restaurant Dive in April.
Last week, reports suggested MOD was considering a Chapter 11 filing.
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MOD officials plan to restructure debt. The company is working on a turnaround plan that involves “rightsizing the portfolio” and enhancing the guest experience.
MOD is a pioneer in the pizza niche. It began in 2008 at downtown Seattle’s Union Square building.
Despite raising $345 million from investors, including Nigel Travis and Spencer Rascoff, the chain faced challenges due to rapid expansion. The company generated an estimated $699 million in domestic sales last year, up 5.7%,
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.
