Friday, March 14, 2014

Quiznos files for bankruptcy, owes money to ESPN?

It appears yet another restaurant chain is nearly toast.

According to Business Week, the national sandwich chain known as Quiznos has filed for bankruptcy and lists more than $500 million in debt owed to creditors. Apparently, one of the creditors Quiznos owes a good chunk of change to is ESPN.

From Business Week:

Quiznos listed debt of more than $500 million in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware. It’s seeking to implement a plan that it said would cut debt by $400 million. Senior lenders “overwhelmingly” support the plan and the chain will continue operations during reorganization, according to a company statement.

U.S. Bank NA, as agent under a second-lien credit agreement, is owed $173.8 million plus interest, according to court papers, making it the largest creditor whose debt is unsecured by collateral. Trade creditors include bakeries and Walt Disney Co.’s ESPN.

The move comes as competition among fast-casual chains has increased to an all-time high in the United States. Quiznos hopes to pay back its debt thanks to a new restructuring plan.

Founded in 1981, Quiznos operates about 2,100 restaurants in all 50 states and 34 countries around the world.

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