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The week started with one food chain filing for bankruptcy and will end with another. Quiznos filed for Chapter 11 bankruptcy protection in Delaware this afternoon.
The company has been dealing with debt for years and has struggled to stay competitive. According to CNBC, the restructuring should cut its debt by over $400 million, the company said. It already received $15 million in financing from senior lenders.
“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,” Quiznos CEO Stuart K. Mathis said in a statement, reports http://www.latimes.com/business/money/la-fi-mo-quiznos-follows-sbarro-into-bankruptcy-20140314,0,1514011.story#axzz2vsnnWAsb>The LA Times.
The company got a “pre-packaged” restructuring plan approved with its creditors.
There are 2,100 locations in the U.S. and 30 other countries and all but seven of these are run by franchisees. They will not be affected by the bankruptcy proceedings the company said.
Sbarro filed for bankruptcy on Monday in New York for the second time in just three years. Hot Dog on a Stick also filed for bankruptcy in February.