The pre-pack restructuring of Quiznos, the US sandwich chain, is expected to have no impact on the UK business, which has agreed heads of terms on a further three sites in London, M&C Report has learnt.
Earlier this month Quiznos filed for Chapter 11 bankruptcy protection to reduce its debt by more than $400m. Stuart Mathis, president and chief executive of the group, which operates c2,100 stores in 31 countries, said: “Our international operations will continue to conduct business as usual.”
He said all but seven of its outlets are not run directly by the company. “As separate businesses, these restaurants are not a part of the Chapter 11 proceedings; they are open and operating as usual.”
Quiznos also has a commitment of $15m in new financing from its senior lenders to “support our ongoing operations during the Chapter 11 proceedings”. “As we move through this process, we will continue working with our franchisees in the US and internationally to strengthen our brand, build momentum and improve growth and profitability, as we position Quiznos for future success,” said Mathias.
Quiznos UK development agent Jack Rai told M&C Report that in this country, heads of terms have been agreed on three sites in London.
“We should be at five or six fairly soon,” he said. “It’s not because we haven’t got franchisees, it’s just been about securing the right sites.”
The group currently operates two sites in the UK, both in London: in Bromley and Aldgate East.