According to the Wall Street Journal, sandwich chain Quiznos has shut 1500 of its 5000 stores—30%—in the past year, and now faces serious risk of bankruptcy. The paper blamed a leveraged buyout five years ago for many of the the company's woes. The authors also note that Quiznos's relatively high-end product has had trouble competing against cheaper rival Subway in the middle of a recession.
Quiznos has already begun to acknowledge its problem. In early July, it hired a Wall Street firm to help them restructure their debt. And its owners added $50 million of capital to the company to avoid a near-term default.
Quiznos was not eligible for listing as one of the 14 restaurant chains most likely to go under by the Street in late June, because, unlike those, it is not a publicly traded company.
Here's a video on the issue:
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