DENVER BUSINESS JOURNAL - Quiznos filed for bankruptcy protection Friday, hoping to reduce its debt load by more than $400 million and to aid franchisees who have complained about company practices making it hard for them to remain open.
The Denver-based restaurant chain is the second-largest sub-sandwich chain in America, behind only Subway, but has experienced a rash of closings nationwide. Company officials said there are roughly 2,100 stores open currently; there were some 5,000 before the recession hit in 2008, and as recently as 2010, there were 3,700 Quiznos operating in America,according to annual figures compiled by QSR magazine and Technomic Inc.
All of the stores will continue operating in the near future as part of the Chapter 11 reorganization plan filed in U.S. Bankruptcy Court in Wilmington, Del., the company said. And Quiznos has received a commitment for $15 million in debtor-in-possession financing from its senior lenders, which, subject to court approval, will be available to support its ongoing operations during the Chapter 11 proceedings, a statement said.
"The actions we are taking are intended to enable Quiznos to reduce our debt, execute a comprehensive plan to further enhance the customer experience, elevate the profile of the brand and help increase sales and profits for our franchise owners," said Stuart Mathis, Quiznos CEO. "We look forward to continuing to work with and support our global network of franchise owners, who are the backbone of our business."
Read the full report on the Denver Business Journal: http://bit.ly/1cGuoJg.