Quiznos Bankruptcy: Toasted Sandwich Chain Faces Subway Competition

Friday, 14 Mar 2014 06:55 PM

By Ken Mandel

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Sandwich chain Quiznos Corp. filed for bankruptcy protection on Friday, as the Denver-based chain seeks to slice its debt by more than $400 million.

Known for its toasted subs, the chain listed liabilities of between $500 million and $1 billion in its petition, according to NBC News. The company has secured $15 million from its senior lenders to keep the business operating during the process.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

"It's a survival of the fittest," Bob Goldin, executive vice president at Chicago-based restaurant researcher Technomic Inc. told Bloomberg News. "The market is not growing, or it's barely growing, so the weak players are getting weeded out."

Quiznos is the second nationwide food outlet to file for bankruptcy this week. Pizza chain Sbarro filed for its second bankruptcy in three years on Monday.

All but seven of Quiznos' approximately 2,100 restaurants are independently owned and operated by franchisees. They won't be affected by the filing, the company said in a statement.

The company has faced increased competition from powerhouse rival Subway, which has more than 41,000 franchised locations in about 100 countries.

Editor's Note: Do You Support Obamacare? Vote in Urgent National Poll

In a pre-packaged bankruptcy like Quiznos', an entity presents an already agreed upon deal with creditors to a bankruptcy court judge, thus reducing uncertainty and legal fees.

In December 2011, Quiznos reached an agreement with creditors that infused $150 million in new equity capital, and cut $300 million from its' debt load. At the time, the move staved off bankruptcy.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved