Earlier this month, a federal court approved the popular pizza chain Sbarro’s repayment plan as a part of its overall restructuring plan. The bankruptcy marks the second time in just three years that the chain has filed for bankruptcy.
According to a recent article by Reuters, Judge Martin Glenn of a New York bankruptcy court signed an order approving the chain’s plan to cut its debt by nearly 85%, from nearly $148 million to about $20 million. Sbarro management believes that by slashing its debt it will be able to remain profitable and continue to pay back its remaining lenders.
Sbarro claims that a decrease in the overall popularity of malls has led to the decrease in revenue for the pizza chain that was founded back in 1956. As a part of the company’s restructuring plan, it will close hundreds of its restaurants across the country, focusing on keeping the more profitable restaurants open for business and cutting the less profitable ones.