It seems that pizza-by-the-slice chain Sbarro was never able to fully recover from a dismal past 5 years. Highlighted by rising commodity prices for cheese and flour in 2007 and 2008, followed by incredible recessionary figures into 2009 furthered the chain's deeply dug hole. Sbarro's filing into the U.S. Bankruptcy Court for the Southern District of New York, pending approval, looks to cut its $486.6 million in debt by $195 million [NRN].
The chain, founded in 1956, maintains over 1,000 locations in 44 countries. Most people will find Sbarro locations a haven for pizza by the slice in anything-but standalone locations. Sbarro operations can normally be found in department stores, shopping malls, airports, casinos, cinemas and college campuses.
The chain hopes to use Chapter 11 Bankruptcy Protection to rebuild into the future. Sbarro's chief executive officer is quoted as saying the plan aims to "clear a path for future growth by restructuring its debt in an effective and timely manner." He continues to remind the public that, "We are a strong company with one of the most recognizable restaurant brands in the world." [Bloomberg]
While many readers maintain differing opinions about the mall restaurant chain, there's no denying the amount of times Sbarro has cured my hangover while on a 48 hour drinking/gambling binge in Las Vegas casinos. Best of luck to Sbarro.