Sandwich franchise Quiznos filed for bankruptcy due to the company’s massive debt. Executives of the restaurant chain said they are attempting a restructuring plan that will reduce the deficit by $400 million.
Just a few days after well-known pizza chain Sbarro filed for bankruptcy, Quiznos did the same as the company faces a huge debt. While the company has filed for bankruptcy, they did state that all 2,100 restaurants and 30 other countries will remain open and operate as usual. Executives have announced a plan that they say will reduce their overhead by $400,000.
Stuart Mathis, CEO of Quiznos, told reporters that the company is taking necessary actions to increase sales and profits for the sandwich franchise. The company will be looking into way to reduce food costs and invest in local advertising. The company also said that it is looking into making loans available to the independently owned franchise owners to make restaurant improvements.
While the company stated that no restaurants will be closing at this time, if the company’s plan fails to improve their profits, the franchise may have no choice other than to close some of its doors.
Why Quiznos Filed for Bankruptcy – Sandwich Franchise Goes Under.