Quiznos files Chapter 11

Denver -- Quiznos on Friday filed for Chapter 11 bankruptcy protection to reduce its debt. The sandwich chain said it filed after reaching a deal to cut its debt by more than $400 million, or about two-thirds.

Quiznos said it would continue operating while it works to implement a debt-restructuring plan and make operational improvements.

"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," stated Stuart K. Mathis, CEO, Quiznos.

Quiznos said it does not expect any changes in operations at its 2,100 restaurants during the reorganization.

Court papers show that under the restructuring plan, Quiznos' senior lenders would trade more than $444 million in debt for all of the equity in the restaurant chain, subject to dilution.