RTIN's PR
biz.yahoo.com
Thursday February 3, 10:19 am Eastern Time
Company Press Release
Restaurant Teams International Inc. To Purchase the Assets of Tanner's Restaurant Group Inc.
LONGVIEW, Texas--(BUSINESS WIRE)--Feb. 3, 2000--Restaurant Teams International, Inc. (OTC BB:RTIN), has reached an agreement to acquire substantially all of the operating assets of the chapter 11 subsidiaries of Tanner's Restaurant Group, Inc. RTIN has agreed to manage Tanner's and provide debtor in possession financing to Tanner's until completion of the sale process (acquisition is subject to approval of the US Bankruptcy Court in Atlanta).
Bob Hoffman, acting Chief Executive Officer of Tanner's Restaurant Group, Inc. commented, ``We are pleased with the solutions and agreements reached with RTIN. We expect this transition to RTIN to allow our restaurants to continue operating and to provide an opportunity for our team of over 300 people to retain their position in the Tanner's restaurants.'
Stanley L. Swanson, Chief Executive Officer of Restaurant Teams International, Inc. stated, ``We are very excited about the acquisition of the Tanner's restaurants in Atlanta. We believe this is a concept which, with our resources, can be developed into a viable franchise opportunity marketed throughout the Southeast. Our plan is to add as many as 10 new Tanner's restaurants in the greater Atlanta area over the next 12 to 18 months. The acquisition of 8 company owned and 2 franchised Tanner's restaurants in Atlanta generating approximately eight million dollars in annual revenues is a tremendous step forward, moving us closer to our objective of becoming a multi-concept holding company.'
Curtis A. Swanson, Chief Financial Officer stated, ``After review of Tanner's operations our management has determined that the unit economics meet our initial model criteria for size volume and capital investment per unit.' Swanson further stated, ``Although the unit economics were acceptable, they simply could not support the significant additional debt and increased G&A expenses after Tanner's was acquired in a leveraged buy out three years ago. We feel very strongly that without these G&A expenses and eliminating the debt, Tanner's restaurants will flourish.'
Tanner's is a 14 year-old restaurant concept with a reputation built on friendly service and quality food. The concept is that of a full service family restaurant serving foods such as rotisserie chicken, BBQ ribs, shrimp, chili, salads, 13 varieties of vegetables, and more. Tanner's restaurants are said to be ``An Atlanta Tradition.'
Restaurant Teams International, Inc. is a public holding company whose stock trades on the fully reporting NASDAQ OTC BB.
This press release may contain forward-looking statements, which are generally preceded by words such as ``believes,' ``expects,' ``anticipates,' or ``intends.' Such statements are subject to risks and uncertainties, including but not limited to competitive conditions, real estate zoning and permitting complications, government regulations, and general conditions in the restaurant market.
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Contact:
Restaurant Teams International Inc., Longview
Curtis A. Swanson, 903/295-6800 |
