Tuesday, September 2nd9.3°C
22736
22768

Mall-based pizza chain Sbarro files for bankruptcy reorganization for second time in 3 years

NEW YORK, N.Y. - Sbarro has filed for Chapter 11 bankruptcy reorganization for the second time in just three years as the pizza chain struggles to turn its business around amid a drop in traffic at shopping mall food courts.

The bankruptcy filing on Monday comes after the company shuttered 155 of its U.S. locations last month. The Melville, N.Y., company still has about 800 locations globally, half of those in North America.

The pizza chain isn't alone in hurting from the decline in traffic at shopping malls. Earlier this year, the owner of Hot Dot on a Stick also filed for bankruptcy protection, citing the negative impact from the trend.

Sbarro is working to balance out its portfolio of mall-based stores with a new concept called "Pizza Cucinova" that lets people build their own pizzas, company spokesman Jonathan Dedmon said in an email. There are two locations of the new restaurant in Columbus, Ohio, and a third planned for Cincinnati in the summer, Dedmon said.

Sbarro is also trying to update its image for serving re-heated pizza at a time when people are increasingly reaching for foods they feel are fresh and wholesome. Dedmon said the chain has been "emphasizing freshness and quality" of its pizza.

Sbarro first filed for bankruptcy protection in April 2011 and emerged a few months later, saying that it significantly cut its debt and received a capital infusion. A new CEO then led a push to revitalize the chain's image by touting new recipes and ovens. But the efforts apparently didn't take hold.

The company says its latest strategy of store closings and balance sheet restructuring will slash debt by more than 80 per cent and improve its profitability. It said its filing is designed to "allow for a quick exit from bankruptcy" as it executes a broader plan developed by the new management team.

The Canadian Press


Read more Business News

22689


Recent Trending




Today's Market
S&P TSX15574.14-51.591
S&P CDNX1023.71-0.28
DJIA17067.68-30.77
Nasdaq4590.326+10.054
S&P 5002003.31-0.06
CDN Dollar0.9169-0.0025
Gold1281.70-2.1001
Oil95.96+1.29
Lumber349.60+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.250.00
Metalex Ventures0.0750.00
Russel Metals36.39-0.09
Copper Mountain Mining2.92-0.01
Colorado Resources0.175-0.005
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



20759

FEATURED Property
20435416512 Bulyea Avenue
3 bedrooms 3 baths
$464,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Manage your behaviour

You can’t manage what you can’t control! You can’t manage the number of sales you’re going to make but you can manage the behaviour that will help you make those sales. Obvious...


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...

_



22692

22692


Member of BC Press Council


22810