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Boston Chicken talks cooked
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August 27, 1999: 7:16 p.m. ET
Negotiations to buy ailing restaurant chain fall following $140M bid
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NEW YORK (CNNfn) - Negotiations with Boston Chicken Inc., its senior lenders and a company interested in buying the ailing chain fell through Friday.
The Golden, Colo.-based Boston Chicken Inc. (BOSTQ), which operates and franchises restaurants under the Boston Market brand name, said talks with Boston Market Acquisition were discontinued.
Dallas investor Jacob Baum is a principal investor in Boston Market Acquisition, which Boston Chicken said had offered to purchase the company for about $140 million, according to an Aug. 3 filing in U.S. Bankruptcy Court in Arizona.
Boston Chicken filed for Chapter 11 bankruptcy protection in the same court on Oct. 5.
"We are disappointed we were unable to reach an agreement," J. Michael Jenkins, Boston Chicken president and chief executive officer, said in a statement. "We hope BMAC maintains an interest in participating in the bidding process."
Monica Bradac, senior director of investor and public relations, said the company is working with its senior lenders and "we've had increase in interest from other parties."
Separately, Boston Chicken filed a notice with the Securities and Exchange Commission Thursday saying it did not expect to file its quarterly report for the three months ending July 11 because of auditing delays.
The company said PriceWaterhouseCoopers LLC is still auditing the company's 1998 year-end balance sheet.
In the filing, Boston Chicken said the results of operations for the second quarter of 1999 will not be comparable to the respective 1998 quarter because of the "change (in) focus of the Boston Market restaurant system from a franchise system to a predominantly company-controlled system."
There are 862 Boston Market restaurants in 33 states and Washington, D.C.
Shares of Boston Chicken fell 1/32 Friday to 11/32.
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Boston Chicken
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