Quiznos prepping for bankruptcy
Posted on Saturday, March 8th, 2014 at 7:26 pm
Denver-based, sandwich chain Quiznos is allegedly about to file for Chapter 11 bankruptcy, and they are reportedly negotiating with their creditors, CBS News stated on February 28.
Reports state that the company is working out a way to settle debt worth $570 million. A good amount of the debt is due to several class action lawsuits that company has faced from their franchisees, which they settled for an estimated $95 million. Franchisees claimed Quiznos padded food and supply prices. The company also has suffered from plummeting sales and stiff competition from other sandwich chains, like Subway and Blimpie.
In 2006, the company has more than 5,000 franchisees in America, but that number has dropped to a little over 1,000.
Both Quiznos and its franchisees did not comment on the bankruptcy issue.
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