The Sbarro pizza chain is officially out of bankruptcy after entering into a plan that allowed lenders to swap $148 million in debt for control of the reorganized business, the Wall Street Journal reported today. The Long Island, N.Y.-based company, which has more than 800 restaurants around the world, was poised to get new owners under the plan, including distressed-debt investors Apollo Global Management, Babson Capital Management LLC and Guggenheim Investment Management LLC. The plan took effect on Monday, according to documents filed in U.S. Bankruptcy Court in Manhattan. Sbarro put its restaurants, which anchor many mall food courts, into chapter 11 protection on March 10, blaming its financial troubles on an "unprecedented decline in mall traffic" that made it difficult to repay its debt. Sbarro closed roughly 180 of its 400 restaurants in North America before filing for bankruptcy, enabling it to save roughly $82 million a year, according to court filings.
