Sbarro is planning to file for Chapter 11 bankruptcy protection, The Wall Street Journal reports. The U.S. fast-food pizza chain, which is owned by New York-based MidOcean Partners, has around $350 million in bonds and loans.
The New York-based chain has appointed law firm Kirkland & Ellis to advise on restructuring options. Sbarro is also in discussions with a group of hedge funds that hold its senior debt to provide around $35 million in debtor-in-possession financing that will help the chain keep operating while it is under bankruptcy protection.
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