Bob Evans Farms Announces Closing of Eight Remaining Owens Restaurants
Bob Evans Farms, Inc. (Nasdaq: BOBE) announced that it has closed its eight remaining Owens Restaurants in Texas and signed a definitive agreement for an undisclosed amount to sell the restaurant properties, plus two additional properties, to a joint venture between The Woodmont Company, of Ft. Worth, Texas, and Commercial Net Lease Realty, Inc., of Orlando, Fla.
The transaction is expected to close during Bob Evans Farms' fourth fiscal quarter.
Owens Country Sausage, Inc., a wholly owned subsidiary of Bob Evans Farms, Inc., is not impacted by the sale. Owens will continue to operate its food production plants in Richardson and Sulphur Springs, Texas.
Larry Corbin, president and chief executive officer of Bob Evans Farms, Inc., commented, "It is always a difficult decision for us to close restaurants, but financial results at these locations had not met our expectations for some time. We were not able to grow the concept based on our performance combined with the high cost of advertising in the Dallas Metroplex, so we were receptive when the opportunity to sell arose. This decision, however, does not affect our Owens Country Sausage operations. Owens enjoys strong brand recognition and regional distribution of its products across 13 states, and we remain committed to building its business. Furthermore, although the company has more aggressively closed underperforming restaurants this fiscal year, no additional closings are planned for fiscal 2006 which ends in April 2006."
Greg Rabin, senior vice president of The Woodmont Company, commented, "This is great quality real estate for which we feel fortunate to have the opportunity to acquire. Our plans are to redevelop and redeploy the assets."
Owens Country Sausage, Inc., a wholly owned subsidiary of Bob Evans Farms, Inc., is not impacted by the sale. Owens will continue to operate its food production plants in Richardson and Sulphur Springs, Texas.
Larry Corbin, president and chief executive officer of Bob Evans Farms, Inc., commented, "It is always a difficult decision for us to close restaurants, but financial results at these locations had not met our expectations for some time. We were not able to grow the concept based on our performance combined with the high cost of advertising in the Dallas Metroplex, so we were receptive when the opportunity to sell arose. This decision, however, does not affect our Owens Country Sausage operations. Owens enjoys strong brand recognition and regional distribution of its products across 13 states, and we remain committed to building its business. Furthermore, although the company has more aggressively closed underperforming restaurants this fiscal year, no additional closings are planned for fiscal 2006 which ends in April 2006."
Greg Rabin, senior vice president of The Woodmont Company, commented, "This is great quality real estate for which we feel fortunate to have the opportunity to acquire. Our plans are to redevelop and redeploy the assets."