Quiznos files for Chapter 11 protection as sandwich chain tries to reduce debt by $400M


DENVER – Denver-based Quiznos has filed for Chapter 11 bankruptcy protection to reduce its debt by more than $400 million after the chain lost ground to competitors.

The toasted sandwich company said Friday that it voluntarily filed to reorganize to implement a pre-packaged restructuring plan.

Quiznos says the move won’t affect its customers.

The company only owns and operates seven of the nearly 2,100 Quiznos restaurants. The rest are owned and operated by franchisees and aren’t part of the bankruptcy proceedings.

Quiznos also says its distribution centres are open and fulfilling orders.

Quiznos, founded in 1981, says the restructuring plan has been approved by its creditors so it expects to emerge from reorganization quickly.

Darren Tristano, executive vice-president at Technomic, Inc., a food industry consulting firm, said Quiznos operates in a crowded field where other “fast casual” choices for consumers include Jimmy Johns, Firehouse and Jersey Mike’s. All were hurt by the recession, but Quiznos had added pressure from franchisees, several of whom have filed lawsuits accusing the company of putting corporate profits ahead of the concerns of franchise owners.

In a statement about its Chapter 11 filing, Quiznos CEO Stuart Mathis said the company was taking steps to support franchisees that included reducing food costs and making loans available to some franchise owners for restaurant improvements.

Tristano said that while Quiznos might be able to slow its decline, the chances of returning to its heyday, when more than 4,000 Quiznos restaurants were operating, are slim.

“There’s too much competition,” Tristano said.

Get our daily briefing on innovation, leadership, technology & the economy.
Weekdays at 6 AM ET. Learn More »

5 comments on “Quiznos files for Chapter 11 protection as sandwich chain tries to reduce debt by $400M

  1. This internet site is certainly instead helpful considering that I am with all the second developing an online floral internet site inspite of the fact that I am only commencing out for a result it is truly relatively little, nothing whatsoever similar to this internet web page. Can web site url to some from the posts appropriate here because they are fairly. Many thanks considerably. Zoey Olsen


  2. My heart broke when they zoomed in on Nando’s face at the beginning on the match. He looked so sad. I honestly thought he’d come in after the 70th minute or so. I’d love for him to see some action in Munich.


  3. Oh no! I cannot make it and I am so sad! I actually want to go however the girls are throwing me a likely away party that night at Angie’s. And that i need so much clothes for my new job. So bummed. Anyway, have a very blast and that i would go when using the dress its fab! XOXO


  4. We have noticed that credit restoration activity must be conducted with techniques. If not, you would possibly uncover yourself endangering your rank. In order to realize your aspirations in fixing your credit rating you have to confirm that from this moment in time you pay all of your respective monthly dues promptly in advance of their planned date. It is significant on the grounds that by not accomplishing that, all other steps that you might decide to try to improve your credit positioning will not be effective. Many thanks for expressing your ideas.