Mall-based pizza chain Sbarro is reportedly preparing to file for Chapter 11 bankruptcy reorganization as early as next week, with a prearranged restructuring agreement aimed at cutting the chain's $365 million debt in half. The chain, which grew out of a single family-owned Brooklyn grocery store and opened its first mall unit in 1967, now operates about 1,000 quickservice pizza restaurants at malls and airports in 40 countries. The chain, which took on significant debt as part of a 2007 buyout by private-equity firm MidOcean Partners, saw its sales battered during the recession.

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