Sbarro Files for Bankruptcy
The family-owned-turned-franchise company Sbarro might be closing their doors, for good. If you're a fan of their fast-food pizza, then you might want to stock up now, because the closing might happen as soon as next week, as they may be forced to file for Chapter 11 bankruptcy. Yikes!
The 55-year-old Sbarro, which is based in Melville, New York, will be just one more company to be added to the list of the economically deceased. Fuddruckers and Charlie Brown's Steakhouse were also recently added to the list of obituaries.
This news doesn't come as a shock to all, as Sbarro announced in January that they were in debt and had hired bankruptcy and restructuring lawyers and advisers.
Sbarro is in talks with hedge funds holding its senior debt to obtain $35 million of debtor-in-possession financing so it can keep operating while in bankruptcy, the Journal said. Talks remained fluid, and an agreement could still fall apart, it added.- huffingtonpost.com
A Sbarro spokesman stated that the company will continue to operate normally while they work on their debt and restructuring.
Is this good or bad news to your ears?