Mall Food Courts to Lose 155 Sbarro Pizza Restaurants

But it is expanding in South American markets

   

Mall Food Courts to Lose 155 Sbarro Pizza Restaurants

On Wednesday, pizza chain Sbarro said it would shutter 155 shops as the company struggles to compete in a changing economy.

sbarro 300x177 Mall Food Courts to Lose 155 Sbarro Pizza Restaurants
Source: http://en.wikipedia.org/wiki/Sbarro Wikipedia

Sbarro locations are a popular staple of U.S. shopping mall food courts. However, Sbarro’s fortunes have fallen as mall foot traffic has fallen in recent years. The privately-held Sbarro emerged from bankruptcy protection in 2011 after transferring ownership to its senior creditors, Bloomberg notes.

egreetings.com  200x200 Mall Food Courts to Lose 155 Sbarro Pizza Restaurants
Egreetings Closing Website on Feb. 12, 2014

So far, the new management has not managed to reverse the chain’s fortunes. In January, Standard & Poor’s Rating Service downgraded Sbarro’s credit rating from CCC+ to CCC-, calling its current finances “unsustainable” and suggesting that Sbarro would “likely seek to restructure its balance sheet.”

While Sbarro is reducing its presence in U.S. shopping malls, the chain is launching new locations in South America. In fact, Sbarro opened 81 new locations last year.

A family owned business originally started in 1956, Sbarro was purchased by an investment firm for $417 million in 2007. However, the business was hurt by declining consumer spending during and after the recent recession.

Sbarro currently operates more than 800 locations around the world.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/02/mall-food-courts-lose-155-sbarro-pizza-restaurants/.

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