Quiznos Files for Chapter 11 Bankruptcy Protection
Posted on March 14, 2014Quiznos has filed for Chapter 11 bankruptcy protection. The Denver-based restaurant chain is known for its toasted sub sandwiches. Quiznos says its pre-structured restructuring plan will enable it to reduce debt by over $400 million. Quiznos has about 2,100 locations with all but seven being operated by franchisees. CNN/Money says Quiznos once had 5,000 stores.
Stuart K. Mathis, Quiznos ceo said in a statement, "Our business plan includes several key elements aimed at supporting our franchisees, including reducing food costs, implementing a franchise owner rebate program, in certain circumstances making loans available to franchisees for restaurant improvements, investing in advertising to improve location awareness, and providing new incentives for prospective franchisees. We are also introducing new technology at the restaurants and taking other actions to help our franchisees operate their businesses more efficiently."
The Quiznos bankruptcy news follows two other recent restaurant chain bankruptcy filings by Sbarro and Hot Dog on a Stick.