TORONTO/CNW/ – On December 13, 2001, Country Style Food Services Inc. received a “stay Order” from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangements Act. The Order gives the company the flexibility it needs to restructure its operations and finances with the long-term objective to return to profitable growth. Deloitte & Touche Inc. will serve as the Court-appointed monitor.
Country Style’s financial performance has deteriorated as a result of an increasing number of poor locations and under-performing franchises. Under the Order, the company will close many of its under-performing outlets immediately and refocus its energies on growing and supporting the remaining healthy core of profitable stores.
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“The Court Order helps make it possible for us to restructure our current business and secure the foundation for growth and prosperity,” stated Pat Gibbons, Country Style’s new President since September 10, 2001. “We are committed to serving customers in markets across Canada. We have critically examined the performance of all locations. Every store was assessed on its ability to generate consumer traffic, present an inviting and consistent Country Style atmosphere and meet sales objectives.
“The company will continue to operate over 150 strong locations that will ensure our customers receive high quality products and excellent service. These stores will continue to contribute positively to our business, providing the base from which we intend to revitalize Country Style,” he said.
According to Gibbons, “We have entered a new era at Country Style Foods. The current investors have given us a vote of confidence by agreeing to inject new money into the company which will help us make the restructuring plans work. We have aggressive plans for new marketing initiatives that we believe will build the Country Style brand and position us for growth. Our franchisees and headquarters staff are working together with renewed vigour to ensure the long-term health of our business.”
Country Style Food Services Inc. is the third largest coffee and donut franchiser in the Canadian quick service restaurant industry. There are over 150 franchised and corporate locations across Canada operating under the “Country Style” brand name. Country Style also operates in the retail “fresh bake” industry through over 60 franchised locations operating under the “Buns Master” brand name.
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By GlobalDataSOURCE: Country Style Food Services Inc.
