Quiznos files for bankruptcy
Sub shop Quiznos announced Friday that it was filing for bankruptcy. Choked by more than half a billion dollars of debt, the chain is restructuring, cutting almost $400 million of owed money, and, for the moment ... is toast.
In 2009, a class-action lawsuit settlement forced Quiznos to pay $95 million to its independently-owned franchises, that, according to the Post, originally sued because expensive ingredients made it nearly impossible to turn a profit.
CEO Stuart Mathis promised to aid franchisees, writing in a statement, "We look forward to continuing to work with and support our global network of franchise owners, who are the backbone of our business."
And according to Businessweek, since its popular Five Dollar Footlong deal began, Subway alone rocketed to 40,000 stores and is planning to open 10,000 more in the next four years.
Boasting higher quality sandwiches and toaster ovens, Quiznos soon discovered "that all most people want from a sandwich is to know that it's healthy and cheap."
The news comes after weeks of bankruptcy rumors, but the chain has already laid out a blueprint to get back in the sandwich game.