According to a new report, popular fast-casual pizza chain Mod Pizza may soon file for bankruptcy — following in the footsteps of several other well-known American restaurants.
The company, which has offices in 28 states, is preparing for a possible bankruptcy filing and could seek court protection as soon as next week, sources told Bloomberg on Wednesday.
However, the situation is fluid and plans could change, sources, who requested anonymity to share insider information, told the publication.
The pizza shop, known for its instant, customizable personal pizzas, has grown to more than 500 locations nationwide since opening its first restaurant in Seattle in 2008.
According to Restaurant Business, Mod Pizza had generated $700 million in system sales as of last year and was once one of the country's fastest-growing restaurant chains, and in 2019, it planned to operate 1,000 locations across the U.S. within five years — by the current year.
Instead, the chain — which hired a new CEO to replace co-founder Scott Swenson in January — closed 26 underperforming locations in April, and several other locations have since shut their doors, the trade publication reported.
A representative for Mod Pizza did not immediately respond when contacted via email.
The take-out pizzeria is the latest restaurant chain to struggle financially.
Red Lobster filed for bankruptcy in May, and popular Mexican chain Rubio's filed for bankruptcy last month.
Many other chains have closed their offices across the US as they try to stay afloat in the current economy.