Surpassing:MOD Pizza has new owner after closing 44 restaurants amid bankruptcy rumors

MOD Pizza has dispelled rumors of bankruptcy amid dozens of restaurant closures,Surpassing announcing that it has been acquired by a new owner.

Elite Restaurant Group acquired 100% of the equity of MOD Pizza under a merger agreement between the company and an affiliate of Elite, the popular pizza chain said in a news release Wednesday.

"MOD has an outstanding culture and passionate, loyal guests and employees,” Michael Nakhleh ofElite Restaurant Group said in a statement. “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”

MOD Pizza has worked hard over the last week to shrug off rumors that they were “preparing a potential bankruptcy filing,” according to reporting from Bloomberg.

MOD Pizza was “working diligently to improve our capital structure and are exploring all options to do so,” company spokesperson Rick Van Warner told USA TODAY on Monday before the announcement.

Warner confirmed to USA TODAY on Thursday that the pizza chain had closed 44 restaurants year-to-date.

Here’s what we know. 

What is MOD Pizza?

MOD, or “Made on Demand” Pizza, is a fast-casual restaurant chain selling “fully customizable” individually sized pizzas and hand-tossed salads since 2008, the MOD Pizza website says. 

MOD Pizza says on its website that it has 512 locations in 28 states around the country, with the greatest number of locations in Texas, Washington and California. It's unclear if that number reflects the recent closures.

What is next for MOD Pizza?

MOD Pizza has been implementing a plan that would rightsize its portfolio, refresh its brand and elevate guest experiences, according to the pizza chain. The plan has led to "steady improvements to the overall business," MOD Pizza said.

“MOD is a beloved brand with a strong following,” Beth Scott, CEO of MOD Pizza, said in a statement. “We’re excitedto work with Elite Restaurant Group to strengthen MOD’s future.”

Warner said he does not expect Elite Restaurant Group to change the pizza chain's brand name following the sale. It is unclear how the acquisition will affect leadership within MOD Pizza, the spokesperson added.

What is Elite Restaurant Group?

Los Angeles-based Elite Restaurant Group also owns Patxi’s Chicago Pizza, Daphne's California Greek, Gigi’s Cupcakes, Marie Callender’s, Slater’s 50/50 and Mimi’s Cafe.

The terms of Elite Restaurant Group's acquisition of MOD Pizza were not disclosed, according to Warner.

The sale to Elite Restaurant Group was based on the need to restructure and improve MOD Pizza's balance sheet, and to overcome past overexpansion, the impact of the COVID-19 pandemic and changing industry conditions, Warner said.