Distress is on the menu for more restaurant borrowers
- Emily Fasold
- +Bill Weisbrod
- + 1 more
Last fall, we looked at how investor appetite for restaurant debt was ramping up as the commodity inflation that plagued the industry in 2022 finally started to cool off — but a recent string of restaurant bankruptcies suggests a bleaker outlook for the sector.
Seattle-based fast casual chain Mod Pizza is the latest example. Earlier this month, the CD&R-backed company (which specializes in artisanal build-your-own pizzas) announced that it had agreed to be acquired by Elite Restaurant Group in a deal that many saw as a way to avoid a potential bankruptcy filing.