Like my Great Uncle Aloysius always used to say — if at first you don’t succeed at restructuring your failing pizza chain under Chapter 11 bankruptcy protection, try, try again. After its first round with Chapter 11 didn’t work out so well, Sbarro is reportedly planning to file for bankruptcy again.
The effort to perk up sales during its last round of Chapter 11 back in 2011 hasn’t helped, prompting the pizza chain to look for votes by the end of this week for a prepackaged restructuring plan, reports the Wall Street Journal. That way it can breeze through bankruptcy court smoothly.
If it nabs enough votes it could file for Chapter 11 protection as early as Sunday, a source tells the WSJ.
A spokeswoman didn’t comment on the filing but said that the company’s new management team and advisers have been “thoroughly evaluating the business” over the past nine months.
“We are making significant progress,” he said.
Sbarro announced in February that it would be closing about 155 of its 400 North American restaurants in an effort to cut costs (and food options for mall-goers and desperate people at airports), under the weight of $140 million in debt.
Sbarro Preparing to File for Bankruptcy Protection [Wall Street Journal]