The Sbarro pizza restaurant chain filed for bankruptcy court protection Monday, less than three weeks after it was forced to close more than 40% of its U.S. locations.
In a statement Monday the chain said the bankruptcy filing is a pre-packaged plan, which means that it has already agreed on a reorganization plan with creditors that hold 98% of the company’s debt. That should allow it to quickly shed an estimated $140 million in debt, and emerge from bankruptcy as a healthier company.
It is the second bankruptcy filing in less than three years by the chain, which previously filed for bankruptcy in April 2011.
Full Story: Pizza chain Sbarro files for bankruptcy