Oregon, US-based Elite Restaurant Group has acquired Mod Pizza in a move that is set to prevent the fast-casual chain from filing for bankruptcy.
The California-based restaurant group, through its affiliate, has taken over 100% of Mod Pizza's equity.
The financial terms of the deal have not been made public.
Nation’s Restaurant News quoted Elite Restaurant Group president Michael Nakhleh: “MOD has an outstanding culture and passionate, loyal guests and employees. We recognise the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
The latest acquisition follows recent speculations that Mod Pizza was considering bankruptcy, with a spokesperson revealing that a turnaround strategy was in progress.
“We are working diligently to improve our capital structure and are exploring all options to do so," the spokesperson stated.
Mod Pizza, established in 2008 in Seattle, is known for offering 40 toppings and eight sauces, allowing customers to create customisable pizzas.
The chain operates 540 locations across the US and Canada.
In 2019, Mod Pizza received a $160m investment from the private equity firm Clayton Dubilier & Rice.
Despite initiating steps towards an initial public offering in 2021, Mod Pizza had faced challenges, mirroring the difficulties of other fast-casual restaurants in an industry contending with inflation and a decline in consumer spending.
A Mod Pizza spokesperson recently confirmed the closure of 44 restaurants as part of the company's efforts to “right-size its portfolio, refresh its brand and further elevate guest experiences”.
