Seattle, Washington — Mod Pizza, a popular fast-casual pizza chain with over 500 locations in 28 states, is facing the possibility of filing for bankruptcy, joining a list of well-known US restaurants experiencing financial struggles, according to sources familiar with the matter.

The company, known for its customizable personal pizzas made on the spot, was once a rapidly growing restaurant chain with plans to operate 1,000 locations across the US within five years. However, recent reports suggest that Mod Pizza is now preparing for a potential bankruptcy filing and could seek court protection as early as next week. This comes after the closure of 26 underperforming locations in April and additional shutdowns since then.

Mod Pizza, which generated $700 million in system sales last year, has been impacted by the challenging economic climate facing the restaurant industry. The chain’s efforts to remain financially viable have been further complicated by the effects of the ongoing pandemic on consumer behavior and dining trends.

Despite naming a new CEO earlier this year and implementing strategic changes, Mod Pizza continues to face financial uncertainties. The company’s potential bankruptcy filing highlights the broader challenges confronting the restaurant sector, where numerous chains have been forced to close locations or seek bankruptcy protection in response to economic pressures.

With Red Lobster and Rubio’s Coastal Grill also recently filing for bankruptcy, the struggles of Mod Pizza underscore the broader industry trend of restaurant chains grappling with financial difficulties. As the situation evolves, stakeholders are closely monitoring the chain’s next steps and the potential impact on its operations and employees as it navigates this challenging period.