Quiznos Bankruptcy: Toasted Sandwich Chain Faces Subway Competition

Friday, 14 Mar 2014 06:55 PM

By Ken Mandel

  Comment  |
   Contact  |
  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.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
[Error loading the WebPart '']
Value cannot be null. Parameter name: virtualPath
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
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Baby Jesus Stolen From Church Nativity, Replaced by Severed Pig Head

Friday, 26 Dec 2014 18:40 PM

Sometime between Christmas Eve and Christmas morning, someone stole baby Jesus from a Massachusetts church's nativity sc . . .

Transit Officers Help Deliver Baby on Philly Subway on Christmas Day

Friday, 26 Dec 2014 18:03 PM

Two Philadelphia transit police officers helped to deliver a baby on Christmas day after the mother's water broke on a s . . .

Mall of Georgia Flash Mob Wedding Takes Bride by Surprise (Video)

Friday, 26 Dec 2014 17:39 PM

A bride planning to take photos was surprised at the Mall of Georgia with a flash mob and a wedding, all arranged by her . . .

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.

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