Struggling pizza chain Sbarro Inc said it filed for bankruptcy protection under Chapter 11, in a move aimed at eliminating about $200 million of its debt.
Melville, New York-based Sbarro is seeking court approval to enter into a $35 million debtor-in-possession financing agreement, which it has secured with some of its existing first-lien lenders.
The Sbarro family started their company as a salumeria, or Italian grocery store, in Brooklyn in 1956 soon after immigrating to the United States from Naples, Italy.
Today, the company sells pizza, pastas and other Italian food through more than 1,000 restaurants in 30 countries; its ubiquitous green, white and red banner is a familiar sight in malls, rest stops and airports.
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