Mod Pizza, one of America's fastest-growing pizza chains, made headlines earlier this year when it abruptly shuttered 27 underperforming restaurants across at least 10 states and Washington D.C.
The chain's financial woes may not be over just yet as circulating reports indicate the company is now mulling a bankruptcy declaration.
Citing anonymous sources, Bloomberg reported on July 3 that Mod Pizza is preparing a potential bankruptcy filing.
One of the sources said the pizza chain could declare bankruptcy as early as this week. However, a final decision has yet to be made and their plans could change, the source added.
Mod Pizza did not immediately respond to our queries for confirmation and comment on these reports.
However, a spokesperson told Restaurant Business Magazine that it's "exploring all options" to improve its capital structure (i.e. the combination of debt and equity a company uses to fund operations and expansion).
"We have a brand guests love, a passionate team and a solid turnaround plan underway that is making progress," the spokesperson told the publication.
However, Mod hasn't gotten much closer to its goal in the years since then. The chain's website currently lists 512 locations across the United States.