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Seeking debt relief, famous restaurant chain chooses bankruptcy

The famous restaurant chain Quiznos has entered bankruptcy looking for debt relief. The company is seeking a complete financial restructuring that could help eliminate approximately $400 million in debt. Seeking debt relief was necessary for the company as more sandwich competitors have opened up restaurant locations.

Washington readers may be interested to know that the company intends to sustain operations while in bankruptcy, and the plan should not affect many franchise owners and operators. The famous sandwich restaurant has seen profits drop as other fast-food restaurants have opened and expanded. The company has asked for approval of a $15 million loan to continue operations through the bankruptcy process.

Quiznos has more than two thousand locations throughout the country. It has been suggested that part some of the financial woes could be related to over-expansion. The chain recently went through a financial restructuring to shed part of the debt burden, but it was insufficient to cover the extensive debt and liabilities of the restaurant. The company has a financial plan that will be submitted to the bankruptcy court for approval.

When filing for bankruptcy, either as an individual or a company, Washington readers should note that a judge has to approve these plans. Individuals filing for bankruptcy will have to submit to some type of credit counseling, where bankruptcy details will be explained. When seeking debt relief, it can be beneficial to seek a case evaluation from a knowledgeable and reliable source. In many cases, bankruptcy is a viable option to get rid of debt by following an approved and manageable plan.

Source: SFGate, Quiznos Follows Sbarro to Bankruptcy Citing Growing Competition, Dawn McCarty and Leslie Patton, March 16, 2014

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