An approval for $10 million from United States Bankruptcy Court in Wilmington, Del Monday allows Quiznos to continue normal operations while it restructures.
According to The Denver Post, the franchise chain will use the money from a $15 million fund from bankers and supporters associated with the company's aims.
After previously, needing to be paid back $441 million prior to Quiznos submittal for bankruptcy, loaners have concurred on pardoning the initial debt for $200 million in a new amount, and most of the value of the re-vamped Quiznos. Quiznos submitted documents to re-structure March 14.
"The actions we are taking are intended to enable Quiznos to reduce our debt, execute a comprehensive plan to further enhance the customer experience, elevate the profile of the brand and help increase sales and profits for our franchise owners," Stuart Mathis Quiznos Chief Executive Officer said in a statement via a press release on the company's website Friday. "We look forward to continuing to work with and support our global network of franchise owners, who are the backbone of our business."
"Our business plan includes several key elements aimed at supporting our franchisees, including reducing food costs, implementing a franchise owner rebate program, in certain circumstances making loans available to franchisees for restaurant improvements, investing in advertising to improve location awareness, and providing new incentives for prospective franchisees. We are also introducing new technology at the restaurants and taking other actions to help our franchisees operate their businesses more efficiently," Mathias said in the statement.
The initiative will help the franchise restaurant chain improve its operations so it can make its services better, renew its brand, and put further emphasis on its pristine upscale food products, different than those in other fast food products a press release on its website reported.
Two thousand one hundred Quiznos restaurants are solely owned and run by individual franchisees throughout the United States, and also in 30 countries across the globe the press release reported. The franchises are open, and not included in the bankruptcy the press release reported.
