It appears that one of the biggest sandwich chains in America may be in for some tough times ahead.
According to the Wall Street Journal, Quiznos is on the verge of defaulting on its loans, and has brought on financial advisers to negotiate with its lenders and discuss restructuring options. The article states that increased competition, poor relations with franchise owners, and high rents have all contributed to the dire situation at the Denver-based chain, as well as a leveraged buyout that happened five years ago, when market conditions were significantly better.
Quiznos first started out in Denver more than 30 years ago, eventually expanding throughout the United States, as well as to a number of other countries throughout the world. It currently has about 10 locations in the Boston area.
For more information on this story, please go to the Wall Street Journal article below.
LBO, Recession Singe Quiznos
Thanks to Grub Street New York for bringing this to our attention.
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