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Quiznos files for Chapter 11 in move to cut debt by $400M

By McClatchy News Services


Quiznos, the Denver-based sandwich chain, said Friday it had filed for Chapter 11 bankruptcy in Delaware, the second quick-service restaurant chain in a week to do so.

The filing is expected to be speedy, as Quiznos senior leadership had already secured a "prepackaged" restructuring plan with its creditors, the company said in a statement. The move will cut the company's debt by more than $400 million.

Quiznos' bankruptcy filing comes just days after Sbarro, the New York-based pizza chain, filed for court protection in Manhattan on Monday for the second time in three years. Hot Dog on a Stick, another purveyor of quick-service food, in February also filed for bankruptcy protection.

Competition in this food segment has been fierce, with the rise of other competitors that include Chipotle Mexican Grill Inc. and other quick-service options.

Quiznos executives said the bankruptcy filing, if approved, would increase the company's flexibility as it aims to improve operations and boost its performance.

"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 K. Mathis, Quiznos' chief executive.

The company, which has outlets in Hawaii, said it had received a commitment for $15 million in financing from its senior lenders to support operations during the bankruptcy.

All but seven of Quiznos' 2,100 locations in the U.S. and 30 other countries are independently owned and operated as franchises. The restaurants will continue operating as usual.

Ricardo Lopez, Los Angeles Times

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honokai wrote:
Subway has better specials like the $5 ($6 in HI) footlong
on March 15,2014 | 06:27AM
GooglyMoogly wrote:
But Quiznos tastes better. They are a lot pricier, though.
on March 15,2014 | 07:06AM
iwanaknow wrote:
there used to be a Quiznos in Kuhuku 3 years ago but their prices where to high for the locals........now they are long gone.
on March 15,2014 | 08:09AM
cojef wrote:
Never cared for either Quiznos or Subway and have not been inside one yet. Am 88 years old.
on March 15,2014 | 11:02AM
what wrote:
Quiznos and Subway sandwiches require much chewing.
on March 15,2014 | 02:18PM
Maneki_Neko wrote:
Maybe they should call up Sbarro's and get a group discount on lawyers fees.
on March 15,2014 | 12:22PM
HD36 wrote:
Hmm, Staples just closed over 200 stores, Costco reported dissappointing earnings, same store sales at McDonald's and Walmart are down, and the main stream media still believes we're in a fairy tale economic recovery. Maybe ultra dove Janet Yellen will ramp up QE rather than taper and face the harsh reality that the economy is propped up by printing $65 billion a month, down from $85 billion.
on March 15,2014 | 12:23PM
SteveToo wrote:
Love my Subway's...Never did like Quiznos...
on March 15,2014 | 05:06PM
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