#1
#1 out of 1
business8h ago
Mass closure of Subway stores feared after huge operator goes under
- MTF Enterprises filed for Chapter 11 bankruptcy protection, affecting 45 Subway locations and about 400 employees across four states.
- The filing highlights about $2.3 million in outstanding obligations and debt-prone financing, including SBA-backed loans and high-interest merchant cash advances.
- Subway's U.S. footprint has shrunk amid ongoing closures, with the chain losing locations while pursuing strategic footprint changes.
- Subway has faced multiple closures in recent years, with thousands of stores shuttered since 2015 as competition and costs rise.
- Analysts say the market is more competitive and consumer spending at quick-service restaurants has weakened.
- Subway is pursuing a data-driven footprint strategy, including opening and relocating stores to optimize guest experience.
- Roark Capital Group acquired Subway in 2023 for $9.6 billion, a move not reversing the U.S. sales decline.
- International expansion remains a bright spot, with Subway operating over 37,000 restaurants worldwide.
- Subway is implementing 'Smart Growth' and a redesigned store concept to boost profitability.
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