Sbarro, the operator of over 1,000 pizza outlets worldwide, which filed for Chapter 11 bankruptcy in April, has been rescued after its lenders agreed to reduce its debt and the group received a $35m injection of new investment. The company, which is 95% owned by private equity group MidOcean Partners, had struggled since August 2008, when it reported losses because of higher costs for ingredients, including cheese, flour and pasta. The group, which operates outlets in shopping centres in 40 countries, has also struggled to meet payments on $150m in loan notes that were used in the acquisition by the private equity firm. Earlier this year, it said it had reached a deal with lenders on a reorganisation plan that will trim $200 million off its debt. Nicholas McGrane, interim president and chief executive, said the new agreements had left the group a “stronger, better capitalised, and more competitive company with a solid financial foundation for future growth”. He said: “Our reorganisation plan eliminates more than 70% of our debt, and provides access to $35m in fresh capital from our new ownership group.”