Sbarro filed for Chapter 11 bankruptcy in April 2011. The chain was known for serving pizza, pasta, and other Italian-American foods in shopping malls, airports, and similar high-traffic locations.
Sbarro’s business model depended heavily on mall traffic, but changing consumer habits, declining visits to traditional malls, and high operating costs weakened the company. It also carried significant debt from earlier expansion and ownership changes.
The chain continued operating during bankruptcy and emerged after restructuring later in 2011. Sbarro subsequently filed for bankruptcy protection again in 2014, making its financial history more complicated than a single restructuring.
Sbarro is sometimes confused with fast-food pizza delivery chains. Unlike Domino’s or Papa John’s, its traditional restaurants emphasized food-court and walk-up service rather than delivery.