Struggling pizza chain Sbarro and its 30-plus affiliates filed for bankruptcy protection on Monday for the second time in less than three years, according to reports.
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This comes about a week after The Wall Street Journal first reported that Sbarro was soliciting votes due by the end of last week for a prepackaged restructuring plan that would help expedite a potential stint through bankruptcy.
The Melville, N.Y.-based fast-food pizza chain has roughly $140 million in debt, and in court filings it lists between $100 million and $500 million in both assets and liabilities.
Last month, Sbarro announced a plan to shut 155 of its 400 North American restaurants, a cost-cutting move stemming from weak sales that have failed to recover from the 2008 financial crisis.
The company did not immediately respond to FOX Business for comment, though a spokesperson did tell the Journal recently that Sbarro was “thoroughly evaluating the business.”
Sbarro is privately held, but shares of rival chains Domino’s Pizza (DPZ) and Papa John’s (PZZA) were down 0.40% to $79.04 and 0.62% to $53.18, respectively, in recent trade, tracking an overall decline in U.S. equities.