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Sbarro files for bankruptcy protection a second time

By Kyle Johnson,

Sbarro's fortunes don't appear to have improved since the company emerged from bankruptcy protection after filing for the first time in 2011 as the pizza chain has filed once again.

The company is aiming for a "quick exit" and would give control of Sbarro over to lenders through a Chapter 11 plan, reports The New York Times.

The reorganization plan has the support from the majority of those who hold the company's debt.

Sbarro cites lower mall traffic and an "unsustainable" balance sheet for the reason the company needed to renter bankruptcy protection. The pizza chain previously announced that of its 799 stores worldwide, 180 that were bleeding money would be shuttered.

According to The Associated Press, Sbarro hopes improving its image and its "Pizza Cucinova" idea will help turn things around and draw in customers interested in putting together their own pizzas.

The reorganization plan is supposed to help reduce 80 percent of the company's debt, but it indicated a willingness to hear ideas from lenders not on board. Any plan will need to be approved by a judge.

image: By Andrevruas (Own work) [CC-BY-SA-3.0 or GFDL], via Wikimedia Commons

 
 

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