With 1,000 stores closed in the past three years, 40% not even breaking even, and rampant discontent among franchisees, it comes as no surprise that Quiznos is on the brink of violating debt terms. In fact, The Franchise Hound has been expecting this news for quite some time.
According to the Wall Street Journal, Quiznos has brought on advisers to rework their finances, negotiate with creditors and possibly offer ownership stakes in return for debt forgiveness. Sources say that the law firm Paul, Weiss, Rifkind, Wharton & Garrison as well as investment bank Moelis & Co. have been tapped by the sandwich chain for their assistance during this process.
More Negative Press for Quiznos… read on.