Melville’s Sbarro Emerges from Bankruptcy

Sbarro, the Melville-based pizza and pasta chain, announced on Monday that its financial woes are finito. The company is clinging on another year as it recovers from its bankruptcy status.

Sbarro ended its Chapter 11 protection this week, which it filed for in April, citing high ingredient costs and shrinking sales.

A Manhattan court approved the company’s reorganization plan on Nov. 17, with the company stating that its financial struggles had come to a close. The chain reduced its debt by 70 percent and infused $35 million in capital, the company stated in a release.

"As Sbarro emerges from Chapter 11 today we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth," Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro said. “…Our business is performing well, and as we enter our busiest period of the year, we look forward to building on our positive momentum and continuing to deliver great food and service to our customers."

While customers can continue to enjoy Sbarro pizza, the company did not emerge from bankruptcy without a few scratches. To reduce its debt, the chain closed 25 locations since April.