DENVER — Quiznos is responding to reports that it’s under financial pressure and could be headed for restructuring.
“Quiznos has hired a financial adviser to assist in working constructively with its lenders to develop a proper financial structure for the company,” reads the company statement. “We expect these activities will not adversely impact Quiznos’s customers, franchise owners, employees or business partners. We fully expect this process to drive an outcome that will help the brand grow and prosper.”Earlier in the week, a Denver Post report noted trouble at the company. “Privately owned Quiznos does not disclose financial metrics and releases — almost no public information. Yet analysts who follow the company say it is clear that the chain is nearing default on its loans and scrambling to restructure $875 million in debt,” read the newspaper.
According to the Chicago-based research firm Technomic Inc., Quiznos’ 2010 sales were US$1.55 billion, down from the 2008 peak of $2.02 billion. The number of units has declined from about 5,000 in 2005 to fewer than 3,000 this year (including more than 400 in Canada).
For the original Denver Post report, visit denverpost.com.
