Pizzeria chain Sbarro Inc. announced Monday that it has filed for Chapter 11 bankruptcy as it works to reorganize its ownership and eliminate debt to stay in business. The changes are not anticipated to effect business operations at Syracuse University.

Sbarro is based in Melville, N.Y., and has 10 locations in Central New York, including four on Syracuse University’s campus, according to the company’s website. It also has locations in the Great Northern malls, Carousel Center and Syracuse Hancock International Airport, according to the website.

The company, which has more than 1,000 locations in more than 40 countries, reached an agreement with investors to reduce its debt and get new financing, and it will continue to operate business normally, according to a news release on Sbarro’s website published Monday.

Sbarro’s bankruptcy filing reported total assets of about $471 million and approximately $487 million in debt, according to an article published Monday in The Post-Standard. Sbarro’s legal counsel, Kirkland and Ellis LLP, and financial adviser, Rothschild Inc., are advising the company.

The company’s reorganization plan involves eliminating $200 million of debt to bring Sbarro’s debt down to $175 million, according to the release. Sbarro is also trying to get approval from the U.S. Bankruptcy Court for the Southern District of New York to attain a $35 million bankruptcy financing agreement, according to the release.

‘We believe this plan represents the best opportunity for Sbarro to clear a path for future growth by restructuring its debt in an effective and timely manner,’ said Nicholas McGrane, interim president and chief executive officer of Sbarro, in the release.

Sbarro officials could not be reached for comment.

David George, SU’s director of Food Services, said in an email that the university was notified about Sbarro filing for bankruptcy before it happened, but was told the bankruptcy is finance-related and would have no effect on operations at SU.

The university is monitoring the situation closely, George said, and any changes will be addressed as they arise.

SU owns a Sbarro franchise, and all of the pizza served on campus is Sbarro pizza, he said. This includes Schine Student Center, Goldstein Student Center, Kimmel Food Court, the Carrier Dome and all of the dining centers, George said. There is also a Sbarro location in Brockway Food Court, according to Sbarro’s website.

Star Zhang, a sophomore mechanical engineering major, said he has never liked Sbarro pizza, so any potential change at SU won’t affect him.

‘I never get it, so I don’t really care what happens,’ he said.

But Emily Becker, a sophomore political science and policy studies major, had mixed opinions about Sbarro.

‘Sbarro can be hit or miss,’ she said. ‘If they leave, we should bring in Domino’s. I’d rather order Domino’s than get Sbarro from Kimmel.’

jdgenco@syr.edu

Published on April 6, 2011 at 12:00 pm