Quizno's, the sandwich chain known for its toasted sandwiches, filed for bankruptcy protection Friday. But toasters at locations around the country will remain hot and ready.
The Denver-based company's board voted for a pre-packaged restructuring plan that would reduce its debt by more than $400 million. Quizno's' senior lenders have made a commitment of $15 million to support ongoing operations during the bankruptcy proceedings.
"The actions we are taking are intended to enable Quizno's to reduce our debt, execute a comprehensive plan to further enhance the customer experience, elevate the profile of the brand and help increase sales and profits for our franchise owners," said Stuart K. Mathis, Quizno's chief executive officer, in a statement.
Part of the plan involves a franchise owner rebate program, investing in advertising, new technology at the restaurants and new incentives for prospective franchisees.
Quizno's has around 2,100 locations total, while Subway, with its $5 foot longs and its own toaster ovens, has 40,000. The chain recently introduced toasted pastas to the menu, attempting to set itself apart from the growing fast-casual sandwich market.
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