Pizza chain in Colorado is considering “all options” despite bankruptcy rumors
Pizza chain in Colorado is considering “all options” despite bankruptcy rumors

(NEXSTAR) – A pizza chain with over 500 locations across the United States is working on a “reorganization plan” amid multiple reports that the company is considering filing for bankruptcy, a spokesperson for the chain told Nexstar.

Bloomberg reported last week that MOD Pizza, which operates restaurants in 28 states, could file for bankruptcy in the next few days. The source said he was familiar with the company’s plans. The Wall Street Journal reported shortly afterward that insiders had informed the paper of the legal and financial firms that had been hired to discuss the chain’s options.

In a statement emailed to Nexstar on Monday, a MOD Pizza spokesperson, when asked about a bankruptcy filing, said it would be “inappropriate to speculate on the outcome” but confirmed that executives are committed to “improving” the chain’s financial situation.

“We have a brand our guests love, a passionate team and a solid recovery plan that is making progress,” a spokesperson said in an emailed statement. “We are working diligently to improve our capital structure and are evaluating all options to do so.”

Further details will be announced in the coming days, the spokesman added.

MOD Pizza
A MOD Pizza location in Mount Prospect, Illinois, is pictured on July 15, 2019. The company announced in 2024 that executives were “exploring all options” to improve its financial plans amid reports of a possible bankruptcy filing. (Christopher Dilts/Bloomberg via Getty Images

MOD Pizza, founded in Seattle in 2008, has already closed 44 company-owned restaurants this year, the company confirmed. Most have “demonstrated continued underperformance despite the best efforts of the restaurant teams,” a MOD Pizza spokesperson said.

“Some closed due to poor leasing and location decisions made during a period of rapid expansion before the pandemic,” he added.

However, a few years ago, MOD Pizza was considered one of the fastest-growing restaurant chains in the country, having opened a total of 110 of its then-200-plus locations in 2017 alone, Business Insider reported. In May 2021, there were 500 MOD Pizza locations in the U.S., a milestone the company celebrated with free individual pizzas for the first 50 customers at each location.

“Today, the MOD Squad is over 10,000 strong and growing. We have never been more excited about what is to come for MOD!” said Scott and Ally Svenson, co-founders of MOD Pizza, at the time.

MOD Pizza currently has 512 stores in 28 states, most of them in Texas (113), Washington (72), California (46), Arizona (32) and Oregon (32).

There are 22 MOD Pizza locations in Colorado.

By Everly