Sbarro Inc., the fast-food pizza chain that dots shopping-mall food courts, is preparing to file for Chapter 11 bankruptcy protection as soon as next week, said people familiar with the matter.

Sbarro is in talks with creditors for a "prearranged" restructuring deal that would pare more than half the company's roughly $365 million in debt with a goal of a quick trip through bankruptcy court. Under the proposed plan, creditors would forgive much of their debt for equity in the restructured company, the people said.

The...