Popular fast-casual pizza chain Mod Pizza could soon file for bankruptcy, following the example of several other well-known American restaurants, according to a new report.
The company, which has operations in 28 states, is preparing a possible bankruptcy filing and could seek court protection as early as next week, sources told Bloomberg on Wednesday.
The sources, who asked to remain anonymous to share their insider knowledge, told the publication that the situation is uncertain, however, and plans could change.
The pizzeria is known for its pizzas that are made on the spot and custom-made. Since opening its first restaurant in Seattle in 2008, the company has more than 500 locations nationwide.
Mod Pizza earned $700 million in system revenue last year and was once one of the fastest-growing restaurant chains in the country. In 2019, it planned to open 1,000 locations in the U.S. within five years, according to Restaurant Business.
Instead, the chain, which named a new CEO in January to replace co-founder Scott Svenson, closed 26 underperforming locations in April and appears to have closed more since then, the trade publication reported.
A Mod Pizza employee did not immediately respond when we reached out to him by email.
The takeaway pizzeria is the latest restaurant chain to find itself in financial trouble.
Red Lobster filed for bankruptcy in May, and beloved Mexican chain Rubio’s filed for bankruptcy last month.
Many more chains have closed locations across the US in an attempt to stay afloat in today’s economy.