New World Coffee-Manhattan Bagel, Inc. (Nasdaq: NWCI – news) announced today that it has acquired six company-owned stores operating under the Lots ‘A Bagels name in the Colorado Springs, Colo. market. New World intends to sell these stores to third parties as Manhattan Bagel branded franchised locations.
The acquisition is expected to be accretive to earnings immediately. All of the former Lots ‘A Bagels stores will use dough and cream cheese produced in Manhattan Bagel’s Eatontown, NJ factory and coffee roasted at the New World plant in Branford, CT.
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This latest acquisition follows New World’s purchase in late May of the leases and store operating assets of 17 company-owned New York Bagel stores in Oklahoma and Kansas. At that time, New World also acquired Bank of America’s lien rights to substantially all of the remaining assets of New York Bagel Enterprises, Inc. and its Lots ‘A Bagels, Inc., affiliate, which is also a Chapter 11 debtor.
In addition to the leases, store operating assets and lien rights, New World in May also acquired all rights to the New York Bagel tradename and trademarks, and may take ownership of New York Bagel Enterprises, Inc.’s rights under its franchise agreements with approximately 13 franchisees.
New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or owns stores under its four brands in 28 states and Washington, D.C. The Company is vertically integrated in bagel dough and cream cheese manufacturing, and coffee roasting, with plants in New Jersey, California and Connecticut.
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the Company’s SEC filings.
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