Sbarro’s Plan of Reorganization has become effective and the Company has successfully emerged from Chapter 11 with significantly reduced debt and a new $35 million capital infusion.
“As Sbarro emerges from Chapter 11 today we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth,” said Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro. “Our reorganization plan eliminates more than 70 percent of our debt, and provides access to $35 million in fresh capital from our new ownership group.”
Mr. McGrane added, “With the support of our investors, vendors and landlords, and the hard work of our valued employees and franchisees, we are pleased that Sbarro has successfully navigated this process in a relatively short time period while operating our business as usual and without interruption. Our business is performing well, and as we enter our busiest period of the year, we look forward to building on our positive momentum and continuing to deliver great food and service to our customers.”
Based in Melville, New York, operates more than 1,000 restaurants in more than 40 countries. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts.