Bankruptcy Law
Sbarro Inc. May Sell Rather Than Go Through Bankruptcy
Sbarro Inc., a fast-food chain serving Italian fare, announced a plan in April to enter bankruptcy, but today Bloomberg News reports that the business is instead negotiating a sale from a “strategic” buyer.
Sbarro, based in Melville, N.Y., filed for Chapter 11 bankruptcy last month. The entity Sbarro is now in talks with, Bloomberg reports, is a qualified bidder who may offer to buy the entire chain. The proposed deal could be worth more than the original bankruptcy proposal to give the business to creditors, in exchange for cutting its debt.
