Get All Access for $5/mo

Report: Quiznos Is Preparing to File for Bankruptcy According to reports, Quiznos is moving towards its second major financial restructuring in the last two years.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Quiznos is moving towards filing for bankruptcy protection within the next few weeks, according to a report published in The Wall Street Journal.

The sandwich chain is seeking bankruptcy protection due to declining sales and about $570 million in debt, as well as poor relations with franchisees. Quiznos has reportedly been negotiating with creditors for weeks on a restructuring plan that would streamline the bankruptcy court process. However, a final deal has not yet been reached.

This will be Quiznos' second major financial restructuring in two years. In 2012, Quiznos reached an out-of-court restructuring deal that cut its debt load by more than a third. Unfortunately for the sandwich chain, Quiznos reportedly missed a loan payment at the end of 2013 and has been operating under a forbearance agreements with its lenders to delay a potential default since.

Related: How Baskin-Robbins Is Trying Not to Disappear

At its peak in 2008 the chain operated about 5,000 restaurants. Today, there are only approximately 2,100 Quiznos worldwide, including 1,400 in the U.S. Meanwhile, Quiznos' old rival Subway has 41,000 shops, and new competitors such as Potbelly and Jimmy John's are continuing to grow.

Quiznos's lagging sales have been coupled with franchisee complaints regarding the cost of staying in business. A number of franchisees in recent years have filed lawsuits against Quiznos claiming the franchisor cost them "hundreds of millions of dollars" through hidden markups on food and supplies they were contractually obligated to buy.

Related: Desperate Measures: Olive Garden Revamps Menu as Investors Get Pushy

Kate Taylor


Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.


This Artist Answered a Businessman's 'Powerful' Question — Then His Work Became 'the Poster Child for Juneteenth': 'Your Network Really Becomes Your Net Worth'

Reginald Adams was the executive director of a Houston-based art museum for more than a decade before he decided to launch his own public art and design firm.


Harvard Business School Professor Says 65% of Startups Fail for One Reason. Here's How to Avoid It.

Team alignment isn't nice to have -- it's critical for running a successful business.

Business News

Here's What Companies Are Open and Closed on Juneteenth 2024

Since it became a holiday in 2021, Juneteenth has been recognized by some major corporations as a paid day off.

Growing a Business

I Hit $100 Million in Annual Revenue by Being More Transparent — Here Are the 3 Strategies That Helped Me Succeed

Three road-tested ways to be more transparent and build relationships that can transform your business — without leaving you feeling nightmarishly over-exposed.