National pizza chain Sbarro recently announced that it has exited its Chapter 11 Bankruptcy. The company filed for Chapter 11 protection in March and a judge approved Sbarro’s reorganization plan on May 29. While it was forced to close several locations before filing, the company stated that other locations will not be affected.
Sbarro has faced tough times for a number of reasons. Mainly, it has been unable to make up for the decrease in mall traffic. Many of the chain’s locations are located in malls so their business relies heavily on consumers actually going to the mall to shop. With the increase in online shopping, Sbarro faces a serious problem with decreased sales. Many Americans are also starting to eat healthier and therefore cutting pizza out of their everyday diet.
The bankruptcy filing helps Sbarro to continue the reinvention of its business model. The company recently launched Pizza Cucinova, which is being called the pizza version of Chipotle. If this revitalization becomes successful, Sbarro’s bankruptcy reorganization helped make it possible.
So what does a pizza chain’s financial news have to do with you? The story paints a perfect example of how a reorganization can get you out of debt and on the path to financial security. Just like Sbarro not being able to control mall traffic, many people with financial problems are put there by no fault of their own. Studies have shown that unpaid medical bills are one of the top causes of bankruptcy filings. An unexpected loss of employment can also jeopardize a person’s ability to keep up with their creditors.
If you find yourself with debt problems, our experienced attorneys are ready and willing to help. All you have to do is contact our office nearest to you to set up a free private and confidential consultation with one of our licensed attorneys.