Skip to Content
Call Us today! 937-403-9033
Top

Quiznos Files for Bankruptcy Due to $400 Million Debt

|

When you face bankruptcy, there are a lot of things at stake. You could lose your home, your assets or even your savings. If your business is failing, you may want to consider restructuring or reorganizing the business, because if not, you could lose your company, too. That's why it's important to recognize your options in your bankruptcy case. You might be interested in this Chapter 11 bankruptcy case; the popular sub shop and sandwich maker Quiznos has filed for bankruptcy.

The company, which is based out of Denver, has multiple businesses around Ohio and other parts of the United States. Not many Ohioans have gone without noticing their popular red and green "Q" sign or the jingles playing on the TV commercials. But, through all the effort of advertising and sales marketing, it would seem that the company just wasn't making enough revenue to cover its losses. Now, the company is filing for Chapter 11 bankruptcy protection and is asking to reduce its debt by around $400 million. If done correctly, the company believes that it will remain open during the restructuring process.

According to the March 14 story, the company only owns seven of the nearly 2,100 Quiznos restaurants, so the franchises near you might be safe. However, if the company is directly involved with any of those stores, the franchises may still be considered an asset, which could be a problem. Right now, all franchises are kept separate, and that means they won't be part of the proceedings.

Quiznos will be going through a restructuring plan, according to the news. They claim the move to Chapter 11 bankruptcy won't affect customers, as the stores don't plan to shut down during the process. In the meantime, distribution centers are still fulfilling orders.

Source: 10TV, "Sandwich Maker Quiznos Files For Bankruptcy" No author given, Mar. 14, 2014

Categories: