DENVER – Quiznos has filed for pre-packaged Chapter 11 bankruptcy to restructure its finances, increase the company’s flexibility, enhance its operations and reduce the company’s debt by more than $400 million. The Denver- based sandwich maker voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in order to implement its pre-packaged plan.
All but seven of Quiznos' nearly 2,100 restaurants are independently owned and operated by franchisees in the U.S. and 30 other countries. These restaurants are not a part of the Chapter 11 proceedings. They are open and operating as usual. The company plans to work with its franchisees both here and abroad to strengthen the brand, build momentum, and improve growth and profitability.
Quiznos has received a commitment for $15 million in debtor-in-possession financing from its senior lenders, which, subject to Court approval, will be available to support its ongoing operations during the Chapter 11 proceedings. The company's distribution centers are still open and fulfilling orders.
Akin Gump Strauss Hauer & Felds LLP is serving as Quiznos’ legal advisor; Lazard Freres & Co. LLC is serving as the company’s financial advisor; and Alvarez & Marsal is serving as the restructuring advisor.