WFCN —
A huge pizza restaurant is thinking about filing for painful bankruptcy so it can reorganize its finances.
The fast-growing U.S. pizza brand MOD Pizza is reportedly preparing to declare bankruptcy, according to a Bloomberg article from Wednesday.
This is still merely a plan and has not been put into action, according to the publication’s anonymous sources.
A representative from MOD Pizza has said that the company is “exploring all options” to strengthen its financial position.
“Our brand is loved by guests, and we have a dedicated team working on a solid turnaround plan. We are making progress,” the representative stated.
“We’re actively investigating all possible avenues for strengthening our capital structure. “
Image – The Street
“Since this is a continuous process, guessing at the result would be inappropriate.”
A leader in the rapidly expanding market for “made-on-demand,” lunchtime individual-sized pizzas, the company had been expanding at a rapid rate of growth year after year.
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Last year, the chain’s total sales from over 550 stores reached approximately $700 million, and they were contemplating an initial public offering for 2021.
The company outsold its rivals by $300 million.
MOD’s fundraising skills were top-notch, and the organization successfully closed a $160 million fundraising round in 2019.
There were 433 stores in the chain at the time, and they had promised to open 1,000 more within five years.
Mod Pizza was dealing with more serious issues than only the pandemic and inflation.
Scott Svenson, cofounder, was succeeded as CEO in January by Beth Scott, a former executive at Coopers Hawk.
In the end, 26 underperforming MOD Pizza stores were closed.
But a tally on the business’s website indicates that more stores have shut down since then.
In April, after the closures, MOD Pizza reported it had 527 stores.
According to Restaurant Business, there are currently 513 restaurants listed on the company’s website.
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