Quiznos Facing Possible Bankruptcy Into 2012

“Say it isn’t so” — say the last couple straggling Quiznos customers who don’t know that Subway will also toast their subs.

OK, it’s not that bad, yet. But it seems that Quiznos has never really bounced back from the “terrible economy” and the discounted prices of some of its biggest competitors (Subway’s $5 Foot Longs). Coupled with a generally higher ticket, as well as a model based around toasting subs, of which Subway has implemented a response with its own toasting ovens, Quiznos hasn’t had anything significant in recent years to showcase any competitive response to its industry.

Quiznos said it will file for bankruptcy protection if it fails “to reach restructuyring deals with all of its creditors and cannot receive significant concessions from former executives and certainlandlords and former area developers.” [Associated Press]

With roughly 3,500 stores interntationally, Quiznos has closed about 1,500 stores in recent years. Along with that, Quiznos warns that sales over the summer will come in below projections, reports The Wall Street Journal.

A majority of Quiznos’ creditors have agreed to a plan by the restaurant chain to restructure or pay off some $875 million in debt, but a filing for Chapter 11 bankruptcy protection still remains a real possibility. [AP]