Sbarro pizza chain files for bankruptcy. Again.
| New York
Sbarro聽LLC, the pizza restaurant chain, on Monday filed for bankruptcy protection for the second time in less than three years, after struggling with too much debt and lower customer traffic in the malls that house many of its restaurants.
Sbarro聽and more than 30 affiliates filed for Chapter 11 protection from creditors with the聽U.S. Bankruptcy Court听颈苍 Manhattan.
The聽Melville,聽New York-based company has between $100 million and $500 million in both assets and liabilities, according to court papers.
Last month,聽Sbarro聽said it would close 155 of about 400 restaurants it owns in聽North America聽to cut costs.
Following those closures, it would still have more than 800 restaurants worldwide, including those owned by franchisees.
Moody's Investors Service in January said聽Sbarro聽has also struggled with high food, labor and occupancy costs.
Company representatives did not immediately respond to requests for comment about聽Sbarro's restructuring plans.
Sbarro聽was founded in聽Brooklyn,聽New York听颈苍 1956 by Gennaro and Carmela聽Sbarro, a married couple who had immigrated from聽Naples,聽Italy.
It expanded in the聽New York聽City area before launching in 1967 its typical restaurant format, which includes an open kitchen and lets customers serve themselves.
The company had previously filed for protection from creditors in April 2011, and emerged from Chapter 11 the following November.
The case is In re:聽Sbarro聽LLC,聽U.S. Bankruptcy Court, Southern District of聽New York, No. 14-10557.
