Quiznos announced Friday the restaurant chain filed for Chapter 11 bankruptcy protection, five days after Sbarro pizza chain did the same.
The company, known for its toasted sandwiches, said it agreed to a restructuring plan that will reduce its debt by more than $400 million. It listed liabilities of between $500 million and $1 billion in its bankruptcy petition.
The Denver-based company also said in a statement that it has lined up $15 million in funding from investors to help keep the business running during bankruptcy.
The company only owns and operates seven of Quiznos’ 2,100 restaurant locations in the United States and 30 other countries. Most locations are independently owned franchises and will remain open and remain unaffected by the filing, the company said.
Quiznos CEO Stuart Mathis said the company will take steps to help increase sales and profits for its franchise owners. It will look to reduce food costs, invest in local advertising and, under certain circumstances, offer loans for improvements to its restaurants.
Quiznos is the second nationwide food outlet to file for bankruptcy protection in a week. Sbarro pizza restaurants filed for its second bankruptcy in three years on Monday.
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