Sbarro Files Bankruptcy
Sbarro Files Bankruptcy
Sbarro Inc. has reportedly filed for Chapter 11 bankruptcy protection in an attempt to eliminate some $200 million in debt after its sales slowed and the cost of cheese, a vital ingredient for its 1,000-plus nationwide locations, skyrocketed. According to a documents filed Monday morning, the chain has assets of $471 million versus debt of $486.6 million with as many as 10,000 creditors.
The Melville, New York-based pizza chain filed the documents in the US Bankruptcy Court in New York. It's largest unsecured creditor is listed as Bank of New York, which is noted as indenture trustee for $150 million in securities, according to the documents.
“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,” noted Nicholas McGrane, currently serving as the interim president and CEO of Sbarro. “We are a strong company with one of the most recognizable restaurant brands in the world.”
The company is asking a judge to approve a $35 million loan to help the company stay afloat through the bankruptcy process. The company has already negotiated grace periods with its creditors, the latest of which expired on April 1st, according to filings with the SEC.
Sbarro Inc. has reportedly filed for Chapter 11 bankruptcy protection in an attempt to eliminate some $200 million in debt after its sales slowed and the cost of cheese, a vital ingredient for its 1,000-plus nationwide locations, skyrocketed. According to a documents filed Monday morning, the chain has assets of $471 million versus debt of $486.6 million with as many as 10,000 creditors.
The Melville, New York-based pizza chain filed the documents in the US Bankruptcy Court in New York. It's largest unsecured creditor is listed as Bank of New York, which is noted as indenture trustee for $150 million in securities, according to the documents.
“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,” noted Nicholas McGrane, currently serving as the interim president and CEO of Sbarro. “We are a strong company with one of the most recognizable restaurant brands in the world.”
The company is asking a judge to approve a $35 million loan to help the company stay afloat through the bankruptcy process. The company has already negotiated grace periods with its creditors, the latest of which expired on April 1st, according to filings with the SEC.
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