In the bustling world of fast food, not every story is about supersized profits and expansion. Recently, River Subs LLC, a large Subway franchisee operating out of Texas, found itself making headlines for a less celebratory reason—it’s sliding into Chapter 11 bankruptcy.
This isn’t just any bankruptcy story, though. Last week, the company, which runs 48 Subway outlets across Texas, made a court filing that revealed a financial snapshot that was anything but rosy. Both their assets and liabilities hover between the somewhat wide range of $1 million to $10 million. What makes this even more compelling is the backdrop against which this financial turmoil is set—a hefty $3 million payout from a wrongful death lawsuit last year involving Marisela Cadena, a dedicated manager whose life was tragically cut short.
The lawsuit stems from an unimaginably painful event. Cadena, just 43, was shot by her ex-boyfriend right outside one of the Subway shops she managed. This incident not only caused immense personal grief but also financial repercussions for River Subs. The lawsuit that followed added a significant financial burden to an already struggling operation.