For crying out loud, who’s next? That’s what I find myself asking these days. Just when you think things in the U.S. economy might be turning around, wham, your instincts are shattered.
Two new announcements this week are proof positive of the state of things.
Benihana, one of my all-time favorite places to watch people play with knives and get away with it, announced that it is “exploring strategic alternatives,” which is just another way of saying “we’re going to sell ourselves to whoever might want to buy us, or we’re going out of business.” Period. Those are the only “alternatives” my friends.
Check out the formal statement:
MIAMI–(BUSINESS WIRE)–Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today announced that its Board of Directors has decided to explore strategic alternatives available to the Company, including a possible sale, in order to maximize shareholder value.
Richard C. Stockinger, Chief Executive Officer, said “While the Company strongly believes in the renewal program and that significant progress has been made toward achieving its goals, the Company has also stated its intention to commence an expansion plan through restaurant development and/or acquisitions. However, growth would be predicated on raising additional capital, and the Company is reluctant to issue new equity at current price levels. Furthermore, several large shareholders have expressed disagreement with the Board and have indicated a desire to seek Board membership to pursue a change in the Company’s strategic direction.”
Mr. Stockinger concluded, “The combination of issues relating to raising new capital and the divergent views of these shareholders have made it extremely difficult for the Company to implement with confidence a growth plan that would include organic growth as well as acquisitions at this time. As a result, the Board has determined that the best course of action is to engage in a formal review of strategic alternatives available to the Company with the assistance of a qualified financial advisor, including a possible sale. The objective would be to enhance shareholder value, while also maintaining and furthering the strategies the Company has initiated.”
The Company does not intend to disclose developments with respect to the progress of its strategic review until such time as the Board has approved a transaction or otherwise deems disclosure appropriate.
A day earlier, another seeming stalwart firm (at least to me anyway), the owner of the Bugaboo Creek restaurant chain (I kid you not on the name), announced its own solicitation of “alternatives”:
MOUNTAINSIDE, N.J.–CB Holding Corp., parent company of Charlie Brown’s Steakhouse, Bugaboo Creek Steak House and The Office Beer Bar & Grill restaurants, today announced its engagement of investment banking firm Raymond James to assist it in its evaluation of strategic alternatives for its Bugaboo Creek Steak House brand. Bugaboo Creek Steak House was acquired in 2007 by CB Holding Corp.
“Bugaboo Creek Steak House, with its high standard of affordable hospitality and entertaining experiences, holds a unique and compelling position in the casual dining restaurant category. We remain passionately committed to our valued Bugaboo Creek Steak House customers and our restaurant employees while we evaluate the best strategic plans for the brand,” said Sam Borgese, president and CEO of CB Holding Corp.
Bugaboo Creek Steak House serves more than 3.5 million guests each year at its interactive and charming lodge setting restaurants. The brand consists of 30 restaurant units along the eastern seaboard and employs 1840 people.
Can anyone please tell me what on earth the world is coming to when a cool restaurant concept using motorized black bears, beavers and moose (is that plural?) can’t make it?
