Sbarro says it’s filing for Chapter 11 reorganization, marking the struggling pizza chain’s second trip through bankruptcy court in less than three years.
The filing comes shortly after it closed 155 of its U.S. locations. It still has more than 800 locations worldwide.
Sbarro had also filed for bankruptcy protection in April 2011 and emerged a few months later, saying that it significantly cut its debt and received a capital infusion. A new CEO then led a push to revitalize the chain’s image by touting new recipes and ovens. But the efforts apparently didn’t take hold.
Sbarro, based in Melville, N.Y., says its strategy of store closings and balance sheet restructuring will improve its profitability and reduce outstanding debt by more than 80 percent.
SOURCE: The Associated Press