Restaurant Chain Mod Pizza Prepares Potential Bankruptcy (1)

Fast-casual restaurant chain Mod Pizza is preparing a potential bankruptcy filing, according to people with knowledge of the matter.

The company may enter court protection as soon as next week, said one of the people, who asked not to be identified because discussions are private. Talks aren’t final and plans could change, they added.

“We’re working diligently to improve our capital structure and are exploring all options to do so,” a Mod Pizza spokesperson said in an emailed statement.

A MOD Pizza LLC restaurant stands in Mount Prospect, Illinois, U.S., on Monday, July 15, 2019.

Photographer: Christopher Dilts/Bloomberg

The company has more than 500 locations across the US and got its start in 2008 in Seattle. Known for its custom personal pizzas and salads, it received a $150 million investment from Clayton Dubilier & Rice in 2019. It filed paperwork for an initial public offering in 2021.

A representative for CD&R declined to comment.

Several casual dining chains have sought bankruptcy protection this year amid struggles with rising inflation and a pullback in consumer spending. Fish taco chain Rubio’s Coastal Grill filed for its second bankruptcy last month, citing high labor costs. Red Lobster entered court protection in May.

(Adds response from company in third paragraph.)

--With assistance from Claire Boston and Eliza Ronalds-Hannon.

To contact the reporter on this story:
Reshmi Basu in New York at rbasu18@bloomberg.net

To contact the editors responsible for this story:
Jeremy Hill at jhill273@bloomberg.net

Dawn McCarty

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