A company that runs 15 Subway sandwich franchises in Maine and dozens more on the East Coast has filed for bankruptcy.
MTF Subs operates shops in leased locations from Portland to Calais. At least seven were abruptly closed by Maine Revenue Services for several days in December, though they have since reopened, because their business registration certifications were temporarily revoked.
Earlier this year, the company — which operates under numerous LLCs — filed for Chapter 11 bankruptcy protection in federal court in Pennsylvania.
MTF has a reorganization plan to get out of bankruptcy, but that depends on being able to continue operating its 43 franchises, according to court filings.
It’s not clear yet how the filing will affect the long term operations of shops the company runs in Maine. The bankruptcy comes as more than 1,600 Subway locations have closed across the country since 2022.
Most of MTF’s financial problems come from a pair of high-interest merchant cash advance loans, which it owes $1.4 million on, along with $2.3 million in other outstanding loans, other media outlets have reported.
In its initial January bankruptcy filing, MTF said it had between $500,000 and $1 million in assets, with $1 million to $10 million in liabilities. Its larger debts include $243,309 to Maine Revenue Services and $157,146 to Texas-based food supplier Sysco, and it owes smaller amounts of money to at least 18 other creditors in multiple states, according to court filings.
MTF also owes thousands in back rent at more than a dozen Maine locations, according to a separate lawsuit within its bankruptcy case. It operates the shops at leased locations as subtenants on lease agreements made with Subway entities.
It owes rent at its locations in Blue Hill, Boothbay, Brunswick, Calais, Hampden, Machias, Old Town, Portland, Richmond, Standish, Topsham, Westbrook and Wiscasset. Its only local locations not included in that filing are in Bucksport and Lisbon Falls.
MTF did not return a request for comment Thursday.