Sbarro is a famous pizza chain, and it is usually located in food courts present in malls or shopping areas. Currently Sbarro has over 800 stores nationwide. However, it decided to file for Chapter 11 bankruptcy because it was unable to manage its debt, as reported by Bloomberg News in a February 28, 2014 article.
The bankruptcy filing â€œwould let the pizza chain restructure as it struggles with sluggish demand and debt costs.â€ As a result, Sbarro was forced to close over 100 restaurants. Many people think that the company is losing sales because many people are reducing their time spent in malls shopping. Thus, since many people are trying to reduce their spending, this means less fewer to the mall which means a decrease in sales for Sbarro.
Sbarro is not the only mall restaurant chain seeking bankruptcy protections. Hot Dog on a Stick recently filed for bankruptcy.Â Moreover, Hot Dog on a Stick is owned by the same family that owns Sbarro. One thing that both Hot Dog on a Stick and Sbarro have in common is that the decrease in shopping resulted in a decrease in sales. Since more and more people are trying to reduce what they spent, they might go to the mall but they might choose not to eat out.
This is the second bankruptcy that Sbarro has filed within the last four years as it filed for bankruptcy in 2011. This shows that its sales have not picked up, and the company is finding it very difficult to manage its debts.
Individuals filling for Chapter 7 bankruptcies start fresh once they receive their bankruptcy discharge. That means that someone with bills and other debts, except for student loans, can wipe out their bills and debts in bankruptcy. This allows the person to have a new financial life. If you are interested in talking to an attorney about your options when it comes to bankruptcy, then call the law office of Jayson Lutzky, P.C. to set up a free in person initial consultation with the lawyer. Mr. Lutzky has 30 years of experience practicing law in New York State and has helped many clients regain their financial freedom. Call 718-514-6619 or visit www.MyNewYorkCityLawyer.com for more information.