Some lenders are willing to take an ownership stake and equity in trade for forgiving debt owed by businesses. A financially-troubled company takes a hard hit by making deals like this but accomplishes a large goal – survival. Debt relief for Hudson Valley businesses can come in many forms, including one bankruptcy and sometimes more than one.
Sbarro Italian restaurant chain, headquartered in New York, is expected to file for Chapter 11 bankruptcy for the second time since 2011. Insiders reported the company is suffering from high debt and slow store traffic, especially in mall locations. The business apparently has been evaluating operations for much of the last year and, last month, decided to shut down 155 North American outlets.