Searching for a buyer, Mod Pizza mulls Chapter 11

(Source: Mod Pizza/Facebook)

Pizza restaurant chain Mod is considering a Chapter 11 bankruptcy filing as it seeks a buyer, the Wall Street Journal reported. 

According to people with knowledge of the matter, the company has hired law firm Latham & Watkins, investment bank Miller Buckfire and financial adviser Hilco Global for advice. 

The strategic options include a sale of the business or bankruptcy filing among others as the firm’s cash is running low.

Founded in 2008 and headquartered in Seattle, Mod is known for its build-your-own pizza concept. The chain operates about 540 restaurants, with total sales up 5.7 per cent to nearly $700 million last year.

In January, the company appointed Beth Scott as its new CEO, replacing co-founder Scott Svenson. 

Mod Pizza is the latest player in the restaurant sector to struggle with the current economic environment, where interest rates are high and consumers cut back spending.

Last month, Hooters abruptly shut down approximately 40 stores across the country. Red Lobster also closed more than 50 locations and filed for a Chapter 11 in May.

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