Sbarro says it will close 155 locations

NEW YORK (AP) - Sbarro Inc. says it's closing 155 of its U.S. locations, mostly in mall food courts where traffic has declined.

The Melville, N.Y.-based pizza chain said Wednesday the closures affect 1,400 workers. The move comes as the company is trying to improve its financial performance and update its image under yet another CEO who took over just last year.

Jonathan Dedmon, a representative for Sbarro, says the targeted locations will close Thursday.

"The last day of business is today," he wrote in an email.

Sbarro filed for bankruptcy protection in April 2012 when it was no longer able to contend with declining sales and rising costs. It emerged from Chapter 11 protection in November 2012, saying that it had significantly cut its debt and received a new $35 million capital infusion. Shortly after, it named James Greco, a former head of bagel chain Bruegger's Enterprises, as its CEO. Greco led a push to revitalize the chain's image by touting new recipes and ovens. But the efforts apparently didn't take hold; Sbarro named David Karam its CEO last year.

Dedmon did not respond when asked why Greco was replaced.

Sbarro owns 400 locations in North America. The closures do not affect the additional 175 Sbarro locations in the region that are owned by franchisees. After the closures, Sbarro said it will operate 800 stores worldwide, including 81 that were opened last year.


(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Not the End
    Officials have another trick up their sleeves to help save King County's bus service

  • Most Influential
    What does Richard Sherman have in common with Jeff Bezos and Beyonce?

  • Choke Hold
    The FDA is about to regulate a product that helps people quit tobacco
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.