Quiznos bankruptcy filing occurred Friday. Quiznos, a sandwich chain, filed for pre-packaged bankruptcy protection. Quiznos Corp. has reportedly had very stiff competition in the fast-food arena as well as a huge amount of debt for many years, according to the Chicago Tribune on Friday. The competition has mostly come from Subway restaurants.
Quiznos, a Denver-based company which went all out with its unique concept of toasting sub sandwiches, asserts that the restructuring would eliminate more than $400 million of its debt.
Of its approximately 2,100 restaurants, all but seven of them are owned independently and operated by franchisees. Quiznos Corp. says that the restaurants that are independently owned and operated by franchisees won’t be affected by the bankruptcy action.
During the same week, Sbarro Pizza chain announced that it is filing for bankruptcy. That action was made in Sbarro’s effort to seek protection from creditors. Much like Quiznos, the action is in response to terrific competition among fast-food restaurants throughout the country and beyond. Another reason Sbarro Pizza saw decreased traffic to its restaurants is because mall traffic has died out to a great extent, and they have been marketed in malls throughout the country.