Pizza chain goes into voluntary administration
IT'S 'business as usual' as Eagle Boys has gone into voluntary administration.
The Australian company confirmed the news via a statement their website late last week.
They said in the statement this does not extend to franchisees; all Eagle Boys stores remain under the control of individual franchisees and will continue to operate normally.
Administrator's SV Partners has assumed control of Eagle Boys' head office day-to-day operations, with a focus on maintaining business as usual and continuing with negotiations for a sale of the business.
The administrators are in the process of identifying restructuring measures.
Company founder Tom Potter spent 20 years building the franchise before selling his majority stake to an equity firm in 2007, according to News Limited.
Mr Potter accused the firm of making strategic mistakes, pushing up prices and slashing advertising.
He said equity firm NBC dumped a beloved policy of the chain, which ensured pizzas were ready for pick up within two minutes of the customer arriving in store.
"That spelled the beginning of the end,'' Potter said.
"When a company is losing thousands of customers, and (it) does not recognise this as a problem, the business is doomed.
"Customers were leaving in droves to go to Domino's because they were disappointed with Eagle Boys' retail offering."
The Brisbane-based equity firm lists six key areas of focus on its website, including:
Building company value
Increasing profitability by driving well thought out growth initiatives
Mitigation and risk management
- Business process improvement
In 2015, Fairfax reported that Eagle Boys was attempting to raise $20 million to pay down debts and open 50 new stores.
At the time, there was also talk of a potential class action as franchisees claimed Eagle Boys drove them to ruin.
There were also allegations that price wars in the notoriously competitive industry had led to franchisees underpaying workers and drivers.
Eagle Boys stores across Australia will continue to trade during this process.
For Eagle Boys customers, franchisees, employees and suppliers it's 'business as usual' while the Administrators' review is underway.
The Eagle Boys national franchise remains on the market for sale.
The Eagle Boys management team said it was looking forward to the prospect of growing the brand under new ownership.
It thanked Eagle Boys customers, franchisees and team members for their ongoing support during this time.
SOME OF EAGLE BOYS STORE LOCATIONS:
- Chancellor Park
- Coffs Harbour
- Forest Lake
- Hervey Bay
- Logan Central
- Tannum Sands
- Tweed Heads South