Friendly’s Wants To Be More Franchise Friendly!
Under pressure from disgruntled shareholders, Friendly Ice Cream Corp., the Wilbraham chain known for its sandwiches and sundaes, said yesterday it is considering putting the 72-year-old company up for sale.
Friendly's new chief executive George Condos , formerly of Dunkin' Donuts, also laid out plans yesterday to help revive the beleaguered brand, such as updating the menu to include more contemporary sandwiches, cold beverages, and other healthy options, modernizing the restaurants, and putting a premium on quick service. "We need to reposition and energize the Friendly's brand," Condos said.
Until recently, Friendly's stock has been moribund, too. Only once this decade has the stock flirted with the $18 price range of its 1997 initial public offering, but otherwise has been long depressed. A proxy battle from a dissident shareholder coupled with yesterday's development have been a tonic to the stock price; yesterday shares jumped 16.47 percent to close at $13.79, the highest since June 2004.
Friendly's directors said in a statement they have hired investment bank Goldman Sachs & Co., to assist the "board in exploring strategic alternatives to enhance shareholder value," including a possible sale.
Meantime, on Tuesday Sardar Biglari, one of the firm's largest stockholders, sent a letter to other shareholders outlining his strategy to shake up the chain if he and business partner, Philip L. Cooley, win the two directors seats up for election at the company's annual meeting in May. He said the firm needs to convert more company-owned stores to franchises and curb executive compensation.
Read more at: Struggling chain considers a sale by Jenn Abelson, Boston Globe Staff , March 8, 2007
- Franchise topic:
