It is not because of anything drastic, just a change in management, according to Tim Mann chief operations officer of the N.C. Subway Group.
“Those stores are going through a transition (now),” said Mann Thursday morning.
Mann said that the Subway Group is still ‘committed’ to the three sites, located at 312 Northeast Boulevard; 1119 Sunset Avenue; and 1415 Sunset Avenue (inside of Wal-Mart) — all three were managed by Vitus Bradshaw.
“We are still committed to the sites,” promised Mann, “They will open under new management.”
Mann said it could take a few more days, possibly next week before the stores re-open.
Calls to Bradshaw were not immediately returned before press time Thursday.
To reach Doug Clark call 910-592-8137 ext. 123 or send e-mail to sisports@myclintonnc.com.








http://www.gpmlaw.com/uploadedFiles/Resources/Newsletters/The_GPMemorandum/The-GPMemorandum-Issue-120 6-3-2009.pdf?n=7126
Article Reads: FEDERAL BANKRUPTCY COURT FINDS FAILURE TO TRANSFER AGREEMENTS TO
CORPORATION LEFT OBLIGATIONS IN NAME OF INDIVIDUAL
A bankruptcy court in North Carolina has refused to apply the automatic stay in
bankruptcy to agreements that were never formally transferred to the would-be
franchisee corporation. In re KVS Foodsystems, LLC, 2009 WL 1241272 (Bankr. E.D.N.C.
April 29, 2009). Subway’s parent company, Doctor’s Associates, had entered into a
franchise relationship and sublease agreement for two Subway stores with an individual
named Vitus Bradshaw. Bradshaw then formed KVS Foodsystems, LLC (KVS), to operate
his two stores, but he never transferred the rights or obligations of the franchise
agreement or sublease to KVS. In November 2008, KVS filed for bankruptcy. This
reported decision arose from Bradshaw’s petition to the court for an automatic stay
protecting his Subway subleases as “property of the estate” under Chapter 11 of the
Bankruptcy Code.
The court rejected Bradshaw’s petition, stating, among other things, that Bradshaw is
“neither the Debtor, a third party defendant, nor a co-defendant . . . [and] has a
contractual relationship with Subway,” and that Bradshaw, not KVS, had failed to pay
rent to the franchisor for four consecutive months. Therefore, Doctor’s Associates
rightfully terminated the subleases. The only remedy, the court stated, is for Bradshaw
“to file an individual bankruptcy petition under the appropriate chapter should he
determine that it is in his interest to . . . gain the benefit of the automatic stay.”
-College Journalist