WILMINGTON, Del., March 15 (UPI) -- Sandwich shop chain Quiznos has filed for Chapter 11 bankruptcy in Delaware, becoming the second restaurant chain to do so this week, officials said.
The bankruptcy filing will cut Denver-based Quiznos' debt by more than $400 million, the Wall Street Journal reported.
"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 K. Mathis, Quiznos's chief executive, said Friday in a release.
Quizno's senior leadership already secured a "pre-packaged" restructuring plan with its creditors and on Friday asked the court in Wilmington, Del., to approve the plan at an April 24 hearing.
On Monday, New York-based pizza chain Sbarro filed for bankruptcy in New York City, the Los Angeles Times reported. This was the second time in three years that Sbarro has filed for bankruptcy.