MOD Pizza announces new owner

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LONDON, UNITED KINGDOM - 2020/06/02: MOD Pizza logo on their restaurant in Leicester Square. (Photo by Dave Rushen/SOPA Images/LightRocket via Getty Images)

SEATTLE - Bellevue-based MOD Pizza will operate under new ownership as the company manages financial challenges.

Elite Restaurant Group, a company based in California, acquired the fast casual pizza chain.

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

Elite Restaurant Group also released a statement confirming the news.

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

After reports circulated that the company was considering bankruptcy, MOD said in a company release that it has a plan in place and "it has made steady improvements to the overall business."

The company has dozens of locations in Washington state and has restaurants in 28 U.S. states and Canada.

MOD’s ownership news comes as the restaurant industry grapples with high inflation, sales growth, and customers cutting back on eating out. In May, Red Lobster filed for bankruptcy, saying in a court filing that it has estimated debts between $1 billion and $10 billion.

FOX Digital contributed to this report.