Isaac Starkman will remain chief executive officer and chairman of the board.
Isaac Starkman said: “Guy has been in charge of our California operations for some time and has continuously achieved improved operating results. I am proud to say that the board unanimously approved his appointment as president in recognition of this achievement.”
The contract of Kenneth Abdalla, who was acting as an interim president in charge of acquisitions, expired on Dec. 31, 2000. Abdalla remains on the board of directors. Isaac Starkman said: “Ken Abdalla has been of great service advising the company, and I am glad that we will continue to have the benefit of his counsel as a member of the board of directors.”
The company has also announced that a committee of the board consisting of independent directors has been given full authority to respond to any tender offers, merger proposals or proposals to take the company private which might come from the affiliates of any other board members or the affiliates of the Mitchell family, who have accumulated a major holding in the company. While no specific proposals have been put to the company, and no definitive agreements among the primary groups of shareholders of the company have been reported, it was believed prudent to have a committee appointed.
Isaac Starkman said: “The company continues to explore all strategic alternatives to unlock value for the shareholders. Major shareholders have had discussions, but have not reached an agreement that would allow them to proceed at this time on any particular course of action.”
The company presently operates a total of 10 restaurants and one specialty market: Jerry’s Famous Deli in Studio City, Encino, Marina del Rey, West Hollywood, Woodland Hills, Westwood and Costa Mesa in California; Solley’s Delicatessen and Bakery in Sherman Oaks, Calif.; Wolfie Cohen’s Rascal House® in Miami and Boca Raton, Fla.; and The Epicure Market in Miami.
Statements made herein that are not historical facts are forward-looking statements. Important factors that could cause the company’s actual results to differ materially from those projected in, or inferred by, forward-looking statements are (but are not necessarily limited to) the following: the impact of increasing competition in the moderately priced, casual dining segment of the restaurant industry; changes in general economic conditions that impact consumer spending for restaurant occasions; weather and acts of nature that impact restaurant sales; adverse publicity; availability and cost of labor; governmental and regulatory problems that impact operations of restaurants such as health-code enforcement changes, land-use regulations and pollution controls; unforeseen events that increase the cost to develop and/or delay the development and opening of new restaurants and markets; the amount and rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support the development and operation of new restaurants; the availability, amount, type and cost of financing for the company and any changes to that financing; the revaluation of any of the company’s assets (and related expenses), and any changes to tax rates. Reference is made to the company’s annual report on Form 10-K for the year ended Dec. 31, 1999 for a further discussion of these and other risk factors and to Forms 10-Q filed on May 11, 2000, Aug. 9, 2000 and Nov. 13, 2000.