I do have to admit that their sandwiches taste like crap, but that’s beside the point. Quiznos filed for bankruptcy protection for its 2,100 stores today. That comes on top of Sbarro Pizza chain filling for bankruptcy just a few days ago. A coincidence? After all, if you are to listen to Perma Bulls, the FED and our Administrations, the US economy is on fire and about to get better.
What they forgot to mention is that most of economic expansion over the last 5 years has been driven by credit expansion and speculation. This pile of debt is what’s keeping this economy afloat while artificially inflating corporate earnings. Take Quiznos for instance. They have had over $400 Million in debt spread out over 2,100 stores. That’s crazy and no company of Quiznos size can sustain such a heavy debt load. And its not just Quiznos. It’s pretty much everyone outside of massive cash cows like Apple, Google or Goldman Sachs.
When this credit bubble finally pops, and it will, you will see a line of American companies under heave debt burden filling for bankruptcy. Quiznos and Sbaro where just the first to go. If you would be interested in learning when the bear market of 2014-2017 will start, please CLICK HERE.
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The US Economy Is On Fire….Quiznos Files For Bankruptcy….Oh Google
First, Sbarro. Now, Quiznos.
Quiznos has filed for bankruptcy protection, five days after theSbarro pizza chain did the same.
Executives at the restaurant chain, known for its toasted sandwiches, agreed to a restructuring plan that will reduce its debt by more than $400 million, the company said in a statement Friday.
All but seven of Quizno’s 2,100 restaurants in the United States and 30 other countries are independently owned franchises, and will remain open and operating as usual.
CEO Stuart Mathis said the company will take action to help increase sales and profits for its franchise owners going forward. It will look to reduce food costs, invest in local advertising and, in some circumstances, make loans available for restaurant improvements.