Sbarro in downtown New York City. Photo by ps
For the second time since 2011, Sbarro has filed for Chapter 11 bankruptcy. The latest filing came after the pizza chain closed 155 U.S. restaurants in February. After the first filing, the company emerged a few months later, saying it cut its debt and received capital infusion.
USA Today reported recently that Sbarro still has more than 800 locations in more than 40 countries. It said the company explained that the filing last week does not affect the 600 franchise locations worldwide. Sbarro, founded in 1956, made this statement,
The store closure strategy and the balance sheet restructuring plan is designed to improve its profitability and reduce its outstanding debt by more than 80%.
So-so food shouldn't equal bankruptcy