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Tag: Sbarro

  • Sbarro Out of Bankruptcy, Moving its Headquarters

    Pizza restaurant chain Sbarro this week announced that it has officially exited bankruptcy. According to a New York Times report, the company’s reorganization plan was approved all the way back on May 19. That plan took effect for the company starting Monday, July 2.

    In addition to the bankruptcy update, Sbarro also this week announced that it will be moving its national headquarters. The company’s current New York City-based headquarters will soon be relocated to Columbus, Ohio. The company estimates that the move should be complete by sometime in October.

    Sbarro stated that it expects the move to reduce operation expenses. Around 40 employees who work in the company’s New York headquarters will be laid off, but the company emphasized that its other employees across the U.S. shouldn’t be affected. According to the Times, Sbarro currently has around 2,700 employees in U.S. restaurants.

    Sbarro’s Columbus move also puts company leadership closer to its new Pizza Cucinova restaurant business. With two locations in Columbus and one soon to open in Cincinnati, Pizza Cucinova serves pizza with more of a specialty flair than Sbarro’s pizza. Pizza Cucinova is also being expanded through stand alone locations, rather than mall locations.

    Sbarro filed for bankruptcy earlier this year, the company’s second bankruptcy filing in just three years. This latest bankruptcy filing came just as the restaurant announced plans to close 155 of its restaurants in North America – nearly 40% of the company’s total number of restaurants, not including franchise locations.

    At the time of the filing, Sbarro’s CFO commented that reduced mall traffic could be to blame for the company’s falling revenue, along with an inflated budget. As with many businesses that use malls as primary retail locations, Sbarro has been hit by Americans’ quickly-waning interest in mall shopping. As internet retailers have begun competing with physical retailers, smaller malls across the country built during the mall boom of the 80s and 90s have begun to shut down.

    Image via Facebook/Sbarro

  • Quiznos Bankruptcy Filed Days After Sbarro

    Quiznos announced Friday the restaurant chain filed for Chapter 11 bankruptcy protection, five days after Sbarro pizza chain did the same.

    The company, known for its toasted sandwiches,  said it agreed to a restructuring plan that will reduce its debt by more than $400 million. It listed liabilities of between $500 million and $1 billion in its bankruptcy petition.

    The Denver-based company also said in a statement that it has lined up $15 million in funding from investors to help keep the business running during bankruptcy.

    The company only owns and operates seven of Quiznos’ 2,100 restaurant locations in the United States and 30 other countries. Most locations are independently owned franchises and will remain open and remain unaffected by the filing, the company said.

    Quiznos CEO Stuart Mathis said the company will take steps to help increase sales and profits for its franchise owners. It will look to reduce food costs, invest in local advertising and, under certain circumstances, offer loans for improvements to its restaurants.

    Quiznos is the second nationwide food outlet to file for bankruptcy protection in a week. Sbarro pizza restaurants filed for its second bankruptcy in three years on Monday.

    Image via Wikimedia Commons