Sbarro Pizza Chain May File For Bankruptcy
Sbarro, the well-known mall and food court pizza chain, may be filing for bankruptcy, according to an anonymous tipster who spoke to The Wall Street Journal. The pizza chain had already filed for Chapter 11 bankruptcy in 2011 when it was $200 million in debt. Although it has not been confirmed by Sbarro, an official bankruptcy announcement would come as no surprise, as the pizza chain closed 155 underperforming stores last month out of its remaining 400 stores, The Daily Meal reported.
Sbarro did not return calls in time for comment, but told The Wall Street Journal that "the company's new management team and advisers have been "thoroughly evaluating the business' over the past nine months and are making significant progress."
Many experts and news outlets believe that much of the reasoning behind Sbarro's struggles is the slow-down of mall popularity. Most often found in food courts, Sbarro can't keep up with the fact that, according to Business Insider's predictions, half of U.S. malls will have closed or been re-purposed in two decades.
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