3:29 pm December 24, 2011, by Christopher Seward
The Quiznos sub sandwich chain, which has multiple locations in metro Atlanta, is still trying to decided whether it will seek Chapter 11 bankruptcy court protection to deal with its massive debt.
The Associated Press reported Friday that the company is still trying to negotiate with creditors, including former company executives, landlords and developers, who are owed $875 million. The chain wants to owe them a lot less and if it doesn’t get deep concessions with all of the creditors – it has deals with three-quarters of them so far – bankruptcy will follow.
The company did not disclose how its restaurants and franchise relationships would be affected if it decides to file for Chapter 11. In May of 2010, the company announced plans to develop up to 600 new locations nationwide by the end of 2010, through corporate-owned and Quiznos-funded joint venture opportunities.
The company has closed about 1,500 locations in recent years, leaving it with about 3,500 as of July, AP reports. Quiznos has more than two dozen locations in metro Atlanta.
Get inside Atlanta's and national business news and how it affects you.
Vacation stops, manage subscriptions and more