The UK arm of Quiznos, the US-based franchise sandwich chain, is to be dissolved, M&C Report has learnt. The move by the West Sussex-based Quiznos Corporation UK Ltd, comes as its US parent company has hired advisers to help restructure finances and negotiate with creditors over its $850m (£532.2m) debt, which it is thought to be close to defaulting on. The company operated 29 sites in the UK in 2008 but this had fallen to 11 by the middle of last year. In a notice filled at Companies House, the company will dissolve this September "unless cause is shown to the contrary". Speaking about the closure of sites to M&C Report last May, Mehrdad Eshghipour, senior vice-president of operations in the UK, said: “We were hit hard by banks not lending money to franchisees.” Reports in the US said that the company notified lenders that it expects to violate debt terms amid a disappointing financial performance. The chain also told lenders that its second-quarter results would likely come in well below previous projections. In a statement, the company, which has closed around 1,500 stores in recent years to take its international estate to c.3,000, said: “Quiznos has hired a financial adviser to assist in working constructively with its lenders to develop a proper financial structure for the company. "We expect these activities will not adversely impact Quiznos customers, franchise owners, employees or business partners. We fully expect this process to drive an outcome that will help the brand grow and prosper.” The company is believed to have hired law firm Paul, Weiss, Rifkind, Wharton & Garrison and investment bank Moelis & Co. to negotiate with its creditors on how to address its debt levels. The Wall Street Journal suggests that the group is considering asking hedge funds and others holding $225m of debt to forgive those obligations for ownership stakes in the sandwich chain. Quiznos. which is owned by private-equity firm CCMP Capital Advisors LLC, founder Rick Schaden and his investment vehicle Consumer Capital Partners, unsuccessfully tried to refinance its debts earlier this year.