Sprinkle 400 pizza joints across a generous helping of malls, mix in a recession, and you have a recipe for Chapter 11
Roughly two years after Sbarro LLC managed to claw its way out of bankruptcy, the ailing pizza chain is reportedly serving up a fresh slice of Chapter 11 filings.
The Wall Street Journal reports that Sbarro is gathering votes on a restructuring plan that could have the company filing for Chapter 11 protections as early as Sunday. Sales at its restaurants took a hit after the 2008 recession, as foot traffic in its favored habitat, the mall food court, dropped off precipitously.
Sbarro managed to shake off some debts through tweaked recipes, fresher ingredients and closures at hundreds of struggling locations, but the Journal reports that the streamlined firm is still roughly $140 million in the red, a burden that’s just waiting to be sliced, again.