Sbarro is filing for Chapter 11 bankruptcy in an effort to reorganize and eliminate about $200 million in debt. The company says customers will still be able to redeem gift cards and coupons at all locations during this reorganization phase.
I haven’t been to Sbarro in a while, but I used to eat there all the time when I lived down the street from a mall. Their food was good and reasonably priced, so it’s kind of sad to learn that they’re having trouble. Execs blame the problems on lower mall traffic due to the economy, which I can definitely attest to. This same mall that I used to go to all the time seems like a freaking ghost town these days, with empty storefronts and few customers.