Sbarro's submittal to bankruptcy protection is the company's second time in the past three years.
Sbarro has $140 million in money owed it plans to get control on, which has been hurt by people not frequenting shopping malls as much as they've done in the past Reuters reported Monday.
Sbarro also has $175.4 million in company valuables and $165.2 million in legal responsibility costs Reuters reported.
The deal calls for bankers to grab hold the reigns of the company based on a chapter 11 reorganization plan, which enables Sbarro to rapidly come out of bankruptcy from the first time it went on it prior to a May 7th deadline Reuters reported.
Top management at the franchise restaurant company, which has locations in mall food courts are working to continue to make Sbarro a profitable company.
"The board and senior management team are committed to ensuring Sbarro's future growth and success and today's filing is a necessary step," David Karam CEO at Sbarro told Reuters.
Sbarro has 799 restaurants in more than 40 countries where 2,700 individuals make a living, The 582 locations owned by franchise owners are not affected.
February saw the company shutter 155 locations out of the 400 it possesses Reuters reported.
"Sbarro has been stuck with an outdated business model," Michael Whiteman, a restaurant consultant and president at Baum and Whiteman LLC in Brooklyn, New York told Reuters. "Its biggest shortcoming is that it sells food that has been sitting out for a while, and more people want food made to order."
"I don't know that it has a sustainable business over the longer term," he said. "The way to turn the company around in the short haul is to get out of money-losing leases and close stores, which it has been doing," Whiteman told Reuters.
