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Sandwich giant Subway franchisees closed a net 571 locations in the United States in 2022, or about 2.7% of the total store count, ahead of a possible sale of the company for $10B, Yahoo Finance reports, citing corporate documents.
Last year wasn't the first year that the chain shrank in the U.S., as previous overexpansion, outdated menus and other factors have put downward pressure on profits. In both 2021 and 2020, Subway franchisees closed more than 1,000 U.S. locations.
Subway has more than 20,500 shops in the United States, its largest national market, with about 37,000 Subway locations worldwide.
In January, Subway said that it was exploring a possible sale, but did not commit to it. A number of private equity players are reportedly interested in buying the sandwich-maker, though the current economic climate, and especially high interest rates, might make it tough for the company to obtain its $10B asking price.
J.P. Morgan, which is advising Subway in exploring a sale, has set a $5B acquisition financing plan to smooth the way toward a deal, Reuters reports, but there is no way to know whether that will work.
In 2021, the company rolled out a turnaround plan to deal with downward pressures on sales, including a revised menu and hiring various celebrities in advertisements for the company.
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