Marriage Made In Hell For Upset Pizza Franchisees

BusinessDay.co.nz:

There’s trouble in Hell as the owners of the Hell Pizza chain face a possible legal battle with some of their franchisees at the same time as the company is looking to raise new capital.
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The Hell chain was acquired in 2006 by privately owned TPF Group, which also owns the Burger King chain in this country.

TPF Group retail operations director Glenn Corbett said the company was seeking an injection of new capital which would mainly be used to fund expansion of the Burger King chain.

But TPF Restaurants, which operates the Burger King chain, has needed new capital for some time.

The accounts show that in the year to March 31, 2007, the most recent period for which figures are publicly available, the company was profitable but had negative shareholder equity and its auditors tagged the accounts with a statement that its viability as a going concern was dependent on the continuing support of its financiers.

The accounts show the company made a net profit of $1.53 million, down from $2.7m in 2006 but ended the year with net assets of minus $12.7m, compared with minus $2.2m in 2006.


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