Tags: sbarro | bankruptcy | exit

Sbarro Bankruptcy Ends: Pizza Chain Exits Chapter 11 With New Plan

Image: Sbarro Bankruptcy Ends: Pizza Chain Exits Chapter 11 With New Plan

By    |   Wednesday, 04 Jun 2014 03:18 PM

Pizza chain Sbarro emerged from Chapter 11 bankruptcy protection this week with new owners, reduced debt, and a plan to move its headquarters to Columbus, Ohio, from Melville, New York.

Private equity firms Apollo Global, Babson Capital, and Guggenheim Investment are all said to have invested in the company, which exchanged nearly $150 million in debt for equity in the business, according to Forbes.

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Founded in Brooklyn in 1956 by Italian immigrants Gennaro and Carmela Sbarro, the company is moving to Columbus to cut costs and be closer to its new Pizza Cucinova business, which lets people build their own pizzas. The first Cucinova-style eatery opened in October, and there are already a few Ohio locations.

"We want to thank our stakeholders for their steadfast support," Sbarro said in a statement. "The company now can move forward with its plans to invest in and grow the business. We will be announcing progress and further plans for the business in the near future."

Citing court filings, The Associated Press reported that a judge approved the company's plan May 19.

Sbarro filed for bankruptcy protection in March, one month after it closed 155 U.S. locations.

Sbarro has struggled amid a drop in traffic at shopping mall food courts, and Pizza Cucinova represents a move toward a different type of experience.

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Pizza chain Sbarro emerged from Chapter 11 bankruptcy protection this week with new owners, reduced debt, and a plan to move its headquarters to Columbus, Ohio, from Melville, New York.
sbarro, bankruptcy, exit
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2014-18-04
Wednesday, 04 Jun 2014 03:18 PM
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