The Melville, N.Y.-based national chain of more than 800 eateries said its prepackaged reorganization plan has the backing of 98% of its lenders, who are providing $20M in financing and eliminating $140M in debt for substantially all the equity in the company.
Sbarro, owned by buyout firm MidOcean Partners since 2007, last month moved to close 155 of its locations in a bid to stave off bankruptcy.
Dilenschneider principal Jonathan Dedmon, based in Chicago, handles the Sbarro account.
In a statement, Sbarro CEO David Karam was optimistic about the company's future. "The agreement among the company's lenders is an indication of the support and confidence they have in the growth strategies developed by the new management team over the past nine months," he said. "The board and senior management team are committed to ensuring Sbarro's future growth and success, and today's filing is a necessary step to achieve those goals."
Sard Verbinnen & Co worked its 2011 bankruptcy.