TOWN OF HUNTINGTON, New York, June 12
BY: Andrew Wroblewski
The long instilled, New York pizza chain Sbarro is exiting its corporate headquarters in Melville and setting up shop in Columbus, Ohio starting early October, according to a company spokesperson.
“The company now can move forward with its plans to invest in grow[ing] the business,” Jonathan Dedmon said in a statement. “Our immediate plan calls for us to consolidate our headquarters in Columbus, Ohio, to reduce costs and [general and administrative] expenses as part of our overall business strategy.”
Conceived in Brooklyn as a family-run shop, Sbarro made the move to a pizza chain in 1970 extending throughout the U.S. and in other countries throughout the world. Since then Sbarro has spawned over 1,000 locations in more than four decades.
The news of the move comes alongside Sbarro’s clearing of bankruptcy last Monday for the second time since 2012.
“Sadly this move will affect 40 employees in our former Melville headquarters,” Dedmon said. “But it will not affect any of our remaining 2,700 Sbarro employees nationally, including almost 400 restaurants in the New York metropolitan area.”
In 2007, the Sbarro family sold the chain to private equity firm, MidOcean Partners, for over $400 million. Years later, in 2011, the company was burdened by more debt than it could handle and filed for bankruptcy. Then, in 2012, Sbarro emerged from Chapter 11 only to fall back into bankruptcy this past March and to close nearly 200 of its 400 North American restaurants.
In order to, as Dedmon said, cut costs and to be closer to the company’s “new Cucinova artisanal brand of pizza,” which debuted in Ohio, Sbarro hopes the move will put the company back on the track of success.
Originally published: Long Islander News: The Long Islander (Thursday, June 12, 2014; A2)