By Aaron Smith, staff writerApril 4, 2011: 8:36 AM ET
NEW YORK (CNNMoney) — Sbarro Inc., a pizza and pasta fast-food chain popular in malls and airports, said Monday that it has filed for Chapter 11 bankruptcy protection.
The company also said it is seeking court approval for an agreement with lenders for $35 million in financing to help it emerge from bankruptcy. The financing is part of a plan to eliminate $200 million worth of debt, paring its debt to about $175 million.
Sbarro said it expects to continue operating its outlets without interruption during the bankruptcy process.
“We believe this plan represents the best opportunity for Sbarro to clear a path for future growth by restructuring its debt in an effective and timely manner,” said Sbarro Chief Executive Nicholas McGrane, in a press release.
Based in Melville, N.Y., the company said it has more than 1,000 outlets in more than 40 countries. 