Sbarro Files For Chapter 11 Bankruptcy Protection for Second Times in Four Years
Posted on March 10, 2014Sbarro has filed for bankruptcy protection. This is the second bankruptcy for the pizza chain. CNN/Money reports that Sbarro also filed for bankruptcy protection April 2011.
The filing comes about a month after Sbarro announced it would be closing 155 stores. Most of the retailers stores are located mall food courts. Falling mall foot traffic could be part of Sbarro's problem. Bloomberg reports that Hot Dog on a Stick, another mall retailer, also suffered from a decline in mall foot traffic.
Sbrarro said in statement in February, "Sbarro remains a vibrant and growing brand with more than 800 stores worldwide, including 81 that were opened in 2013."
Reuters reports that the 155 plans store closing are Sbarro company-owned stores. It also has franchise locations. Reuters also says that Sbarro plans to cut its debt load by 80% and quickly exit from bankruptcy by May 7.