Restaurant News Resource - McCormick & Schmick’s Restaurant Industry News

Levi & Korsinsky is investigating the Board of Directors of McCormick & Schmick’s Seafood Restaurants (NASDAQ: MSSR) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to Landry’s MSA Co., Inc., a subsidiary of Landry’s, Inc.

Revenues decreased 4.2% to $81.4 million from $84.9 million, substantially due to 65 less store operating weeks from permanent and temporary restaurant closures. Comparable restaurant sales decreased 1.0%.

Revenues for the second quarter of 2011 decreased 1.1% to $88.7 million compared to $89.7 million in the second quarter of 2010.

'We believe that the current directors of MSSR are not acting, and will continue to not act, in stockholders' best interests with respect to our tender offer'

The Board unanimously recommends that McCormick & Schmick’s stockholders reject the LSRI Holdings offer and not tender their shares into the offer, which the Board believes undervalues the Company’s current business and future prospects.

McCormick & Schmick’s Seafood Restaurants, Inc. [Nasdaq: MSSR] responded today to an announcement by Tilman Fertitta, the controlling stockholder of Landry's Restaurants, Inc., who issued a press release stating that he intends to commence, through an affiliate, a tender offer to acquire all shares of MSSR not owned by Mr. Fertitta or his affiliates for $9.25 cash per share.

The amendment modifies several financial covenants to make them less restrictive, reduces the facility from $90 million to $40 million (which can be increased to $60 million under certain circumstances) and extends the term to November 17, 2015.

Restaurant Company to Diversify Board of Directors