Sbarro LLC emerged from Chapter 11 bankruptcy Monday, nearly three months after filing on March 10 a prepackaged plan to cut about 85 percent of the company’s outstanding debt, a company spokesman said.
“We want to thank our stakeholders for their steadfast support,” the company said in a statement. “The company now can move forward with its plans to invest in and grow the business. We will be announcing progress and further plans for the business in the near future.”
The company disclosed that it would move its headquarters from Melville, N.Y., to Columbus, Ohio, which would ultimately reduce costs and general and administrative expenses, as well as place the brand’s seat of operations closer to its fast-casual Pizza Cucinova concept, which has a handful of locations in Columbus.
“Sadly, this move will affect about 40 employees in our former Melville headquarters, but it will not affect any of our remaining 2,700 Sbarro employees nationally, including almost 400 at restaurants in the New York metropolitan area,” the company said.
According to a report in the Wall Street Journal, when U.S. Bankruptcy Court judge Martin Glenn approved Sbarro’s exit plan, the company’s lenders — which include Apollo Global Management, Babson Capital Management and Guggenheim Investment Management — swapped $148 million in debt for controlling equity in the restructured Sbarro.
The chain’s unsecured lenders, including landlords and food suppliers, received $1.25 million to split in the judgment.
The bankruptcy reportedly does not affect Sbarro’s 582 franchised locations in the United States and 40 international markets.
Even after the February closure of 155 company-owned restaurants, Sbarro had more than 800 locations open worldwide, including 81 units that opened in 2013.
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