Pizza chain Sbarro files for bankruptcy protection

By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- Sbarro Inc., a pizza and pasta fast-food chain popular in malls and airports, said Monday that it has filed for Chapter 11 bankruptcy protection.

The company also said it is seeking court approval for an agreement with lenders for $35 million in financing to help it emerge from bankruptcy. The financing is part of a plan to eliminate $200 million worth of debt, paring its debt to about $175 million.

Sbarro said it expects to continue operating its outlets without interruption during the bankruptcy process.

"We believe this plan represents the best opportunity for Sbarro to clear a path for future growth by restructuring its debt in an effective and timely manner," said Sbarro Chief Executive Nicholas McGrane, in a press release.

Based in Melville, N.Y., the company said it has more than 1,000 outlets in more than 40 countries. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,841.98 -86.22 -0.48%
Nasdaq 4,919.64 -19.69 -0.40%
S&P 500 2,080.15 -9.31 -0.45%
Treasuries 2.24 0.06 2.94%
Data as of 7:41pm ET
Company Price Change % Change
Bank of America Corp... 16.29 -0.06 -0.37%
Apple Inc 125.01 -0.79 -0.63%
Microsoft Corp 46.28 -1.32 -2.77%
Chesapeake Energy Co... 14.72 -1.14 -7.19%
Frontier Communicati... 5.94 -0.80 -11.87%
Data as of 4:03pm ET
Sponsors

Sections

Keep an eye on you burgers. After 13 years, the Hamburglar is back at McDonald's. More

Good news for people in Texas and North Dakota: McGladrey chief economist Joe Brusuelas believes the painful period of layoffs is largely done. More

Big Idea Week kicked off in New York City, and it brings the entrepreneurship of the tech industry -- and its workers -- into the classroom. More

Lori Greiner, an investor on ABC's "Shark Tank" offered advice for women looking to be more successful in business. More