Bankruptcy is becoming more common within the restaurant arena. Recently, Quiznos which is a famous sandwich franchise, filed for a Chapter 11 bankruptcy in Delaware, since it is unable to repay its high debt and it is unable to remain in the same arena with its rivals or other restaurant chains, as reported by the Chicago Tribune in a March 14, 2014 article.
If its plan is approved, then this could reduce the debt that it has by about half a billion dollars. Moreover, the company owns about over two thousand chains and all of them except a handful of the shops will â€œnot be affected by the bankruptcy, the company said in a statement.â€ Furthermore, Sbarro also filed for bankruptcy since it has faced a great deal of competition and it has a huge debt, which it is unable to stay on top of, like Quiznos.
Today with the market, and with the new restaurants emerging, some restaurants are unable to make it or survive in the same field. In the bankruptcy petition, Quiznos claims that its debt is over half a billion. Consequently, it will need a loan to be able to run the shops that it has, and this would need to be approved by the court.
The filing of the bankruptcy is not the first time Quiznos tried to reduce its debts. About 2 years ago the company tried to reduce its debt by coming up a plan where it reorganized and was able to get rid of some of its debt.
If you are ready to file bankruptcy, or if you have any questions regarding bankruptcy, then set up an appointment for a free in person initial consultation with attorney Jayson Lutzky. Mr. Lutzky is a Bronx, New York lawyer with over 30 years of experience. He handles personal bankruptcies as well as divorce, family court matters, and accident cases. You may reach our office at 718-329-9500 or you can visit www.MyNewYorkCityLawyer.com.