Sbarro filing for Ch. 11 bankruptcy protection

[April 04, 2011]  MELVILLE, N.Y. (AP) -- Pizza and pasta chain Sbarro Inc. says it is filing for Chapter 11 bankruptcy protection as it works to restructure.

The Melville, N.Y., company said Monday that it has reached a deal with lenders and noteholders on a reorganization plan that will get rid of about $200 million of its debt, which covers more than half of its total debt.

The restaurant chain has suffered, like many restaurants, since consumers clamped down on spending in the recession. It's also strapped by debt it took on when private-equity firm MidOcean Partners bought it in 2007.

Sbarro has more than 1,000 locations in more than 40 countries. Sbarro said it would continue to operate as usual during the restructuring process.

[Associated Press]

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