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Entries in Sbarro (2)

Tuesday
Apr122011

Pizza Chains Falling Like Dominoes

Steve Mason/Photodisc/Thinkstock(NEW YORK) -- There's an epidemic of pizza restaurant chains succumbing to tough economic times.

Just last week, Sbarro Inc. filed for Chapter 11 bankruptcy protection.  Round Table Pizza Inc. and Uno Chicago Grill also filed during the past 12 months.

Together, that’s 1,700 locations nationwide with a combined $1.6 billion in sales.  The factors driving their difficulties are the slow economic recovery and higher prices for ingredients like sauce, cheese and flour.

What’s more, pizza chains are also losing business to restaurants and supermarkets that now offer ready-made pies that customers can take home and bake themselves.  Some warehouse clubs, for instance, sell $10 pizzas that are much bigger than what customers get for the same price in traditional pizzerias.

Some pizza chains are also losing out to their bigger competitors such as Pizza Hut Inc., Domino's Pizza Inc. and Papa John's International Inc., all of which can afford to offer coupons and discounts that the smaller guys can’t match.

Copyright 2011 ABC News Radio

Friday
Apr012011

Report: Sbarro to File for Chapter 11 Bankruptcy

Cam99/Getty Images(NEW YORK) -- Facing an estimated $365 million in debt, Sbarro Inc. is considering filing for Chapter 11 bankruptcy protection, according to The Wall Street Journal.

Citing people familiar with the matter, the Journal reported Friday the popular pizza chain is working on a restructing deal with creditors in which they will forgive most of Sbarro's debt for equity in the reorganized company.  The people also said a group of hedge funds is in talks with Sbarro to provide the company with financial support that will allow it to keep running while it's being restructured.

The Chapter 11 filing could come as early as Monday.

Copyright 2011 ABC News Radio







ABC News Radio