Sbarro’s, the pizza chain for hungry travelers and mall shoppers, filed for Chapter 11 bankruptcy protection Monday, its second time in less than three years.
Sbarro’s and its affiliates have between $100 million and $500 million in debt, according to court filings. The company previously filed for bankruptcy in 2011 and was working its way out of debt.
In February, the New York-based pizza chain said it was closing more than 150 stores nationwide in a bid to improve its finances. The company faces a problem plaguing many retailers: dwindling mall traffic. Many of its stores are located in shopping-center food courts.
The number of people shopping at malls has dropped during the past decade as Americans increasingly shop online. Earlier this year, RadioShack, Staples, J.C. Penney and Macy’s announced that they were closing locations around the country.
Sbarro’s, including franchises, has more than 1,000 locations in 45 countries. The chain opened its first location in Brooklyn in 1956.