By Kevin McCauley
Sbarro, which grew from a mom & pop eatery in Brooklyn 50 years ago to a 1,045-member Italian food chain in 42 countries, is using Sard Verbinnen & Co. to handle its pre-negotiated bankruptcy.
The recession and collapse of shopping mall sales dealt a wallop to the Melville, N.Y.-based operation. Sbarro is also saddled by debt connected to its 2007 buyout by the MidOcean private equity firm.
A successful reorganization will remove $200M in debt from Sbarro's balance sheet.
Interim CEO Nicholas McGrane sees post-Chapter 11 survival based on the chain's position as "one of the most recognizable restaurant brands in the world."
The company registered a hefty $29.3M loss during the first nine months of 2010 on revenues of $240M. It shut down 150 restaurants since '09.
SV&C managing director Jim Barron and VP Nathaniel Garnick handle media relations for Sbarro's fall from grace.