Bankruptcy Court Approves Boston Chicken Agreement
With H. J. Heinz
GOLDEN, Colo., June 21 /PRNewswire/ -- The U. S. Bankruptcy Court, District of Arizona, approved a license agreement between Boston Chicken, Inc. (OTC Bulletin Board: BOSTQ) and H. J. Heinz Company (NYSE: HNZ). Under the terms of the agreement, Boston Chicken will license its Boston Market(R) trademarks to Heinz for the worldwide manufacture and sale, under the Boston Market brand, of packaged food products to the retail trade. Boston Chicken filed its voluntary petition for Chapter 11 bankruptcy protection on October 5, 1998.
(Photo: newscom.com )
As part of the agreement, Heinz will pay Boston Chicken an undisclosed royalty fee based on sales. The agreement is separate and independent of Boston Chicken's restaurant business.
"The Court's approval of this agreement is an important milestone for our company," said J. Michael Jenkins, chairman, president, and chief executive officer of Boston Chicken. "We believe the revenue potential and national exposure provided by Heinz's placement of Boston Market branded products in grocery stores will have a positive impact on the long-term value of our brand."
Consumer research conducted by Heinz showed the Boston Market brand has broad consumer appeal, and that retail shoppers would welcome the convenience of Boston Market's premium, homestyle foods. The concept is expected to be tested in retail stores later this year. Specific products and locations for the test were not disclosed.
Boston Chicken, Inc. operates and franchises restaurants under the Boston Market brand name that specialize in fresh, convenient meals, featuring homestyle entrees, fresh vegetables, sandwiches, salads and side dishes. There are 865 Boston Market restaurants in 33 states and the District of Columbia. Information on Boston Chicken and Boston Market is available at www.boston-market.com.
With sales approaching $10 billion, H. J. Heinz Company is one of the world's leading food processors and purveyors of nutritional services. Its 50 affiliates operate in some 200 countries, offering more than 5,000 varieties. Among the company's famous brands are Heinz, Star-Kist, Ore-Ida, 9-Lives, Weight Watchers, Wattie's, Plasmon, Farley's, the Budget Gourmet, Rosetto, Bagel Bites, John West, Petit Navire, Ken-L Ration, Kibbles 'n Bits, Pup-Peroni, Nature's Recipe, Orlando, Olivine and Pudliszki. Information on Heinz is available at www.heinz.com.
Certain statements in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are described in Boston Chicken's filings with the Securities and Exchange Commission (the "Commission"), which may cause the actual results, performance or achievements of the Company and its stores to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company's success generally is dependent upon, among other things, approval by the Bankruptcy Court of various other Company plans and initiatives and an acceptable reorganization plan. |
