Bankruptcy alarm at Subway's rival: Financial crisis is forcing shutters down

JPrieto Hospitality, which operates 10 Schlotzsky's restaurants, has filed for bankruptcy protection following a decline in revenue. The filing comes as franchisees of Subway and Firehouse Subs have made similar moves, spotlighting growing financial distress across the restaurant sector. The company did not disclose the size of its liabilities in the report. The filings underscore how falling sales are straining smaller franchise operators, even as major chains push expansion. Investors will watch whether more multi-unit franchisees follow with their own bankruptcy filings and whether sales pressure eases in coming quarters.