Subway reportedly failed to get a $10 billion bid

• In February, Subway said it was exploring a sale.
• The chain extended the bidding after it failed to get the price it wanted, the NY Post reported.
• The move comes as Subway has seen its store count decline by the hundreds over the years.

Subway, which put itself up for sale in February, failed to nab the $10 billion price tag it was seeking, according to sources cited by the New York Post.

The company reportedly sought the hefty price despite sinking store counts and a major menu overhaul. A deal seemed imminent just weeks ago. About a half-dozen parties had been courting Subway, per Bloomberg. 

But, now the chain has extended the bidding deadline after luring some new bidders, according to multiple sources cited by the Post. Previous bidders were private equity firms who had trouble with financing, the Post reported. 

“The process is weak,” a lending source told the Post. “The price is not meeting their valuations.”

The news comes a few weeks after Subway executive Trevor Haynes seemed optimistic about the chain’s sale. “We’re feeling good about it,” Haynes told Insider in late June. 

Subway declined to comment on the record for this story. 

The decision to sell the business came more than a year after the company’s last surviving founder, Peter Buck, died in 2021. Subway is privately owned by its two founding families. In late January, Buck’s foundation, where his two sons work, revealed that the late co-founder had left the charity his 50% stake in Subway . 

Subway has spent the past few years trimming corporate staff and closing stores under CEO John Chidsey. The chain closed 1,614 stores from 2020 to 2022, according to Subway’s lastest franchise disclosure document obtained by Insider. 

Despite previous years of slumping sales and store closures, Subway has recently gained some momentum.  

In April, Subway’s global same-store sales grew by more than 12% in the most recent quarter, the chain said.  The privately-held fast-food chain, which shares periodic updates to its financials, said it was its ninth consecutive quarter of positive sales.

Subway has credited the company’s menu overhaul for boosting sales. 

Since 2021, the fast-food chain has rolled out artisan loaves of bread, upgraded soups, new meats, and dressings. It’s even veered from its classic build-your-own sandwich offering by introducing standardized sandwiches as part of the chain’s “Eat Fresh Refresh” marketing campaign launched two years ago. 

This month, the company rolled out automated slicers in stores, a move meant to elevate the menu. 

Are you a Subway insider or franchisee with insight to share? Got a tip? Contact this reporter via email at [email protected] or 714-269-8873.

Correction: July 13, 2023 — An earlier version of this story incorrectly described the New York Post’s report on Subway’s bidding process. The Post’s report said Subway has extended the bidding deadline after luring new bidders; not that the sandwich chain was seeking new bidders.