Quiznos has received a significant injection of capital from its primary shareholders, including private equity funds affiliated with J.P. Morgan Partners LLC and managed by CCMP Capital Advisors LLC and Consumer Capital Partners. The company and its lending group also amended the terms of its existing secured debt to provide additional flexibility to the company.
This infusion of capital, reduction in debt and amendment to the terms will provide Quiznos with the resources and flexibility to further its growth objectives, support its franchise owners and maintain the brand's strong position in the competitive restaurant industry.
"We are very pleased with this announcement and the shareholder commitment this investment represents," said Rick Schaden, founder and CEO of Quiznos. "This investment demonstrates our shareholders' confidence in our vision and strategic direction and lays a solid foundation for pursuing that vision with even greater fervor. We are pleased to be closely aligned with our shareholders and lender base for the benefit of our brand and our restaurants."
Quiznos recently has focused its efforts on excellence in food quality, customer experience and maximizing franchise owner profitability through programs and initiatives designed to grow unit-level revenues and help mitigate the effect of the current economic climate.
Initiatives include microloan programs to remodel existing restaurants and facilitate multi-unit growth, start-up financing for qualified entrepreneurs interested in opening a new Quiznos restaurant, and an operating partner program that provides financing and corporate partnership opportunities to entrepreneurs with prior restaurant experience.
The transaction was managed by Goldman, Sachs & Co.
