View Full Version : bunky is in Dire Straits
Deli Chain Schlotzsky's Files Chapter 11
1 hour, 12 minutes ago
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By NATALIE GOTT, Associated Press Writer
AUSTIN, Texas - Schlotzsky's Inc., a delicatessen franchiser with more than 500 outlets in 36 states and six countries, filed on Tuesday for protection from its creditors under Chapter 11 of the federal bankruptcy laws.
Schlotzsky's said operations would continue normally during the financial restructuring. The Austin-based company owns 21 shops while franchisees own 492 stores.
The restaurant chain reported a net loss of $11.7 million in 2003 versus a loss of $199,000 in 2002. It lost another $671,000 in the first quarter of 2004. In July, the company announced it was cutting 20 percent of its corporate staff and closing 15 company-operated shops.
"It became apparent to our board that this action was necessary to protect Schlotzsky's from millions of dollars in claims, judgments, and debts accumulated during the past few years, while enabling us to restructure the company," Sam Coats, Schlotzsky's president and CEO, said after the filing was made in U.S. Bankruptcy Court in San Antonio.
"I believe the actions taken by the board took great courage and are clearly in the best interest of the company," Coats said.
Schlotzsky's reported liabilities of about $71.3 million and assets of approximately $111.7 million, including approximately $64.8 million of intangible assets, according to the court filing.
Schlotzsky's will ask the bankruptcy court to issue a sale order that would allow the company to sell nine pieces of real estate to Westdale Asset Management, Ltd., an affiliate of Schlotzsky's largest shareholder, for approximately $3.4 million. With the sale, the company would have an additional source of liquidity for its operations over the next few months, a company news release said.
I don't see shit in this story about the Dire Straits.
Hurricane
08-03-04, 03:19 PM
I thought they were a band...can bunky sing too?
I don't see shit in this story about the Dire Straits.
See the little ****** with the earring and the makeup
Yeah buddy that's his own hair
That little ****** got his own jet airplane
That little ****** he's a millionaire
Southern_Yankee
08-03-04, 03:20 PM
How in the fuck does one amass $64.8 million of intangible assets??? You either have assets or you fucking dont.:huh:
SilverSurfer
08-03-04, 03:21 PM
So this still doesn't mean Bunky's store will go out of business I don't think. You can file bankruptcy without closing. See Worldcom.
builder
08-03-04, 03:24 PM
How in the fuck does one amass $64.8 million of intangible assets??? You either have assets or you fucking dont.:huh:
promissory notes are intangible assets.
Southern_Yankee
08-03-04, 03:26 PM
So this still doesn't mean Bunky's store will go out of business I don't think. You can file bankruptcy without closing. See Worldcom.
Im not sure...but it sounds like the franchisees are fucked if they are expecting any coin from corp. Someone needs to go to jail over this...fucking crooks.
How in the fuck does one amass $64.8 million of intangible assets??? You either have assets or you fucking dont.:huh:
intangible assets...patents, copywrites, franchises or licenses, trademarks/trade names, and goodwill. ask bunky what his franchise fee was...
Large corporations usually file bankruptcy several times before they actually go out of business.
Southern_Yankee
08-03-04, 03:28 PM
promissory notes are intangible assets.
Would these be the kinds written on Morton's napkin letter head after a big night of wooing the corp big shots?
Im not sure...but it sounds like the franchisees are fucked if they are expecting any coin from corp. Someone needs to go to jail over this...fucking crooks.
i don't know how his works but generally, you pay a yearly fee and get stuff like advertising in return. my guess is if they went under, he would still operate and not have to pay those fees...which would mean more money for his business.
Large corporations usually file bankruptcy several times before they actually go out of business.
ie- Us Airways...if you've got frequent flier miles, better use them.
promissory notes are intangible assets.
bummer for bunky, but einstiens is way betta. schlotsky's really isnt very deli like. but the food is ok. things'll work out
golden opportunity for Bunky's ShowGirls or Bunky's Billards or Bunky's (somekinda of ripoff of Starbucks).:xyzthumbs
golden opportunity for Bunky's ShowGirls or Bunky's Billards or Bunky's (somekinda of ripoff of Starbucks).:xyzthumbs
yep...get a liquor license and make some money.
Just Fresh sells beer...
plutosgirl
08-03-04, 03:44 PM
I doubt it will even affect him.
I doubt it will even affect him.
depends on how the franchise is structured and how bankruptcy goes, if schlotzsky's holds the lease on the building and the ultimate happens then yeah it'll affect him bigtime.
But we'll see. I feel a pbr moment is brewing.
it's got nothing to do with me. that's the new board of directors getting out from under a shit load of debt created by the former board. we all knew this was coming when the former ceo loaned the co. a couple million and collateralized it with the trademark and some other shit. it's all kind of sketchy..to me, anyway.
in the meantime, 2/3 of corporate staff has been let go. about 20 corporate stores have closed, ie. stores corp. helped finance about 5 years ago to just about anyone willing to go at it, and watched those franchisees abandon ship when the honeymoon was over. that's where they lost their asses. and using most of our marketing money to sponsor austin city limits. in that same time, quiznos, mcalisters, jason's, panera, etc have come up and smoked us. corporate fucked a fair amount of franchisees. fortunately, i'm hanging in there. we're almost clear. so support me while and when you can.
Southern_Yankee
08-03-04, 03:57 PM
so support me while and when you can.:xyzthumbs
Is DD enough :rofl:
:xyzthumbs
Is DD enough :rofl:
Only if it has underwire and that looks like it does.
plutosgirl
08-03-04, 04:02 PM
Hey VOR
I TOLD YA.
Hey VOR
I TOLD YA.
ok you win
plutosgirl
08-03-04, 04:26 PM
ok you win
:banana: :banana: :banana:
PantherPaul
08-03-04, 05:03 PM
fortunately, i'm hanging in there. we're almost clear. so support me while and when you can.
I'll bench my backup Tightend when we play in FF
we're almost clear. so support me while and when you can.
I would eat they EVERYDAY if I lived in Charlotte.
Seriously.
builder
08-03-04, 05:21 PM
ok you win
God....Plu needs to come to NOTD more often if all it takes is a woman disagreeing with you to make you sit down and behave. :rofl:
I would eat they EVERYDAY if I lived in Charlotte.
Seriously.
:xyzthumbs
HighPoint49er
08-03-04, 08:51 PM
Reopen the High Point store Bunky. I'm tired of eating Subway.
mathmajors
08-03-04, 08:53 PM
I'm going to Bunk's on Friday if I can.
Bunky, I remember Arby's making it through this same situation. Actually Arby's Inc didn't make it but a large franchisee bought them out...re-organized and came back stronger. It doesn't happen often, but it does happen.
The problem with having a majority of stores being franchised is you have very little control of the operations and franchisee's are apt to do anything.
I think we have a Bunky's down on Hendersonville Rd in Asheville. I got a blow job in the back parking lot about this time last year and pissed in a McDonald's cup afterward and threw it in their dumpster if it helps Bunk! :xyzthumbs
Bunky, I remember Arby's making it through this same situation. Actually Arby's Inc didn't make it but a large franchisee bought them out...re-organized and came back stronger. It doesn't happen often, but it does happen.
The problem with having a majority of stores being franchised is you have very little control of the operations and franchisee's are apt to do anything.
we'll see. only short term problem will be purchasing power thru our food vendor. it's been a rocky relationship for many years and this may provide their out.
other than that, i owe no money to any schlotzsky;s sudsidy on equipment lease or storefront lease. royalty and marketing is all i pay them. i understand some zees are looking at withholding this until a rebound strategy is placed.
I think we have a Bunky's down on Hendersonville Rd in Asheville. I got a blow job in the back parking lot about this time last year and pissed in a McDonald's cup afterward and threw it in their dumpster if it helps Bunk! :xyzthumbs
it closed several years ago.
I would eat they EVERYDAY if I lived in Charlotte.
Seriously.
me to wossa...........i will now make a point to hit Bunkys Place in the near future!
it closed several years ago.
the building and dumpster are still there- that's why all the homos go back there to get bj's. :laugh1:
the building and dumpster are still there- that's why all the homos go back there to get bj's. :laugh1:your mother must be proud.
your mother must be proud.
she's dead- but yes she was. It's one of those 'what momma don't know won't hurt her' kinda things.
your mother must be proud.
don't get pissy bunky- it's not like I flug any on the building or anything! geesh!
just making a observation. nothing else.
just making a observation. nothing else.
I was gonna aim for the Schlotzsky's sign but it was too far up and I didn't want it to land in my eye so I just wiped it on the other guys pants.
:xyzthumbs
you know I luv ya Bunky. :mushy:
You're not in a good mood tonight. Must be sober.
Derbygal
08-03-04, 11:43 PM
:applause: :rofl:
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