Sbarro Pizza files for second bankruptcy in three years. Only three weeks ago the chain was forced to close 40 percent of its retail locations. According to CNN on Mar. 10, a reorganization plan has already been arranged with its creditors on 98 percent of its debt.
It is the second bankruptcy filing in less than three years by the chain, which previously filed for bankruptcy in April 2011.
Sbarro Pizza is expected to relieve itself of $140 million in debt. The company is expected to emerge from this second bankruptcy a much better company financially.
In just February Sbarro Pizza announced the closure of 155, or about 40 percent, of its U.S. restaurant locations. About 220 stores will remain open. The company also has franchises in 40 countries worldwide.
Sbarro Pizza is left with 2,700 employees. It has also secured $20 million in fresh funding going forward. The company now feels that it is set up for success and ready to grow in strategic locations.
Sbarro Pizza is known for its pizza and other Italian specialty foods. It is headquartered in Melville, New York. Gennaro and Carmela Sbarro, who emigrated to the U.S. from Naples, Italy, started the company. The first location was opened in Brooklyn as Sbarro Salumeria.
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