EAGLE BOYS CAN BE RESCUED: POTTER

Written on the 20 July 2016

EAGLE BOYS CAN BE RESCUED: POTTER

THE demise of Eagle Boys is 'no surprise' says its founder Tom Potter (pictured), but he holds out hope that the business he sold to NBC Capital in 2007 can be restored by the right owner.

NBC Capital called in administrators SV Partners on Thursday to take care of the Brisbane-based national franchisor.

"This is no surprise, because the business has been in decline for some time and the company has continued to do very little to halt that problems, or even accept there were problems," Potter told ABC Gold Coast Mornings presenter Nicole Dyer today.

However, Potter, holds out hope that the right buyer can resurrect the company, which remains the third-largest pizza maker in Australia by market share according to IBIS World, saying 'there is no reason (Eagle Boys) should have gone backwards'.

Potter listed increased prices, reduced advertising spends, the decision to scrap the two-minute pizza guarantee and the cancellation of the planned move into drive throughs as among the things that led to the business' downfall.

"When you put up prices, take away the point of difference and take away the advertising spend, it is a recipe for disaster."

He believes Eagle Boys remains good value for the right operator. Potential buyers have been speculated as Retail Food Group (ASX:RFG), Domino's (ASX:DMP) and an unnamed buyer from outside the pizza space.

"If the right company comes in and buys Eagle Boys it can only be a positive. Let's face it, it can only get better from here."

Eagle Boys has around 130 remaining franchisors, down from a peak of about 340.

Potter founded the business in Albury and opened the Brisbane head office in 1992.

In 2007, he sold 85 per cent of the business to NBC, and the remaining 15 per cent to six members of the management team at the time.


Latest News

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter