Bankruptcy court confirms Quiznos plan
by Eric Schroeder
DENVER – The US Bankruptcy Court in Wilmington, Del., has confirmed quick-service restaurant chain Quiznos’ plan of reorganization. Quiznos filed to reorganize under Chapter 11 of the US Bankruptcy Code on March 14. The plan is intended to increase Quiznos’ flexibility as it executes operational enhancements designed to strengthen performance and revitalize the brand.
“We are pleased to have reached this important milestone and look forward to completing the financial restructuring process, which has created a stronger foundation for us to execute our comprehensive strategic plan,” said Stuart K. Mathis, CEO. “As we near the completion of the court-supervised process, we are looking forward to implementing initiatives to enhance the customer experience, elevate our brand and increase sales and profitability for our franchise owners.”
Back in March, senior lenders of Quiznos voted in favor of the prepackaged restructuring plan, which is designed to reduce the company’s debt by more than $400 million. Quiznos received a commitment for $15 million in debtor-in-possession financing from its senior lenders. Subject to court approval, the financing will be available to support ongoing operations during the Chapter 11 proceedings.
Denver-based Quiznos, founded in 1981, has nearly 2,100 restaurants in 50 states and 30 countries. All but seven of the restaurants are independently owned and operated by franchisees. As separate businesses, the restaurants are not a part of the Chapter 11 proceedings and are open and operating as usual.