The Daily Caller

The Daily Caller
(Photo: Flickr/Creative Commons) (Photo: Flickr/Creative Commons)  

Rest-stop pizza chain Sbarro files for bankruptcy

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