Switerland is nothing new. Mentioned in News Release 5/7/97
DALLAS, May 7 /PRNewswire/ -- Massimo da Milano, Inc., The Italian Bakery
Cafe, (OTC Bulletin Board: MDMI) ("Massimo's"), announces plan to emerge
from Chapter XI within the next 60 days. As part of its reorganization plan,
Massimo's closed its unprofitable locations and as a result is expecting a
profit for 1997. The turn around of the Company has been spearheaded by Dana
C. Verrill, who was the founder and CEO of Spectrum Information Technologies,
Inc., a publicly held high-tech company, which approached $100,000,000 in
sales during the 1980's.
Prior to Massimo's Bankruptcy, the Company had losses in excess of $1
million as a result of an overly aggressive expansion program and
mismanagement. As part of its reorganization plan, Massimo's has paid in
excess of $150,000 of its $350,000 debt owed to the IRS, and has paid $125,000
owed to the State of Texas for unpaid taxes. Massimo's has brought in new
restaurant management and has entered into agreements with two large bakery
customers which should substantially increase revenues. The Company also has
expanded in the following markets: Tulsa, Okla., Oklahoma City, Okla.,
Austin, San Antonio, Houston, California and Colorado. This new coverage area
will allow Massimo's Bakery to continue serving its high quality specialty
breads, cakes and pastries to a rapidly growing group of wholesale customers,
including restaurants and hotels. Along with its increased coverage area,
Massimo's has expanded its sales force in the Dallas/Ft. Worth metroplex and
opened a sales office in Houston.
Massimo's recent progress is in sharp contrast to 1994 and 1995, when
its net loss was over $2,000,000, and in 1996, when the Company had four
restaurants which produced a combined loss in excess of $160,000. As a
result of these Company changes, in less than 18 months all unprofitable
operations have been eliminated and the Company is now efficient and
profitable. The bakery, with the addition of $50,000 in new equipment,
will be able to substantially increase production. Two full-time
marketing representatives have been hired and Massimo's is negotiating
with an experienced food broker who will introduce the Corporation to
national grocery chains in Texas, Oklahoma, Arkansas, Louisiana, and
California. Beginning in the third quarter of 1997, the Company plans to
explore a strategy of opening retail bakery outlets, to be strategically
located throughout the Dallas Fort Worth metroplex. Rather than investing
the $500,000+ to open a restaurant operation, as the Company has in the
past, a retail bakery outlet could be opened for less than $20,000.
Through these outlets, the Company plans to retail its diverse and quality
Bakery product line. Eventually, the Company can expand its food
operation through these same retail outlets by offering packaged, fresh or
frozen, ready to serve foods prepared at its Commissary facility.
Massimo's unaudited sales for the first quarter of 1997 were
approximately $500,000. Massimo's new marketing strategy which began this
April should result in increased sales during the second half of 1997. In
addition, Massimo's should have a NOL of approximately $4,000,000.
Massimo's, The Italian Bakery Cafe, has a wholesale bakery operation
with over 300 customers in Dallas, TX and nationally, as well as a
restaurant and catering operation located at 5519 W. Lovers Lane, Dallas,
TX. Massimo's also has an affiliated restaurant operation in Zurich,
Switzerland.
SOURCE Massimo da Milano, Inc., The Italian Bakery Cafe
-0- 05/07/97
/CONTACT: Crawford Shaw of Massimo da Milano, Inc., The Italian Bakery
Cafe, 214-637-6881/
(MDMI)
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