Friendly Ice Cream Corporation to Increase Size of Board; Offers Shareholder Group Representation on the Board
December 06 2006 - 3:20PM
Business Wire
Friendly Ice Cream Corporation (AMEX: FRN) today announced that it
intends to increase the size of its Board of Directors from five to
seven members. The Board is considering a number of highly
qualified individuals with experience in the hospitality industry
who they believe can bring substantial value to the Company. The
Board of Directors decided to offer one of the two additional seats
on the Board to a designee of the group of shareholders led by
Sardar Biglari (�Mr. Biglari�). The board seat would provide Mr.
Biglari with representation approximately proportional to the
group�s ownership in the Company. The Board determined that while
it desires to add members with business expertise in areas in which
the Company operates, it is in the best interests of the
shareholders to make Mr. Biglari this offer to avoid a potentially
contentious and expensive proxy fight at a time when the Company is
actively pursuing key initiatives to improve shareholder value. In
the event that Mr. Biglari rejects the offer, the Board intends to
fill both seats with highly qualified candidates selected by the
Board. �Friendly�s is firmly committed to serving the interests of
all our shareholders,� said Donald N. Smith, Chairman of the Board,
�and further distractions to our management team and employees will
not serve those interests.� Smith added that �we believe adding
highly qualified individuals to our Board of Directors with
experience in the hospitality industry will assist us in further
pursuing and developing our key strategic initiatives and is in the
best interests of the Company. We also believe that it is important
to listen to our shareholders. Mr. Biglari, together with his
group, control approximately 14.9% of the Company�s outstanding
shares, and we are open to their participation on our Board
proportional to their ownership.� About Friendly Ice Cream
Corporation Friendly Ice Cream Corporation is a vertically
integrated restaurant company serving signature sandwiches, entrees
and ice cream desserts in a friendly, family environment in over
520 company and franchised restaurants throughout the Northeast.
The Company also manufactures ice cream, which is distributed
through more than 4,500 supermarkets and other retail locations.
With a 71-year operating history, Friendly's enjoys strong brand
recognition and is currently remodeling its restaurants and
introducing new products to grow its customer base. Forward Looking
Statements Statements contained in this release that are not
historical facts constitute "forward looking statements" as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements include statements relating to the
anticipated contributions of any new members of the Board of
Directors and the impact of the Company's key strategic
initiatives. All forward looking statements are subject to risks
and uncertainties which could cause results to differ materially
from those anticipated. These factors include risks and
uncertainties arising from accounting adjustments, the Company's
highly competitive business environment, exposure to fluctuating
commodity prices, risks associated with the foodservice industry,
the ability to retain and attract new employees and directors,
including a replacement chief executive officer, new or changing
government regulations, the Company's high geographic concentration
in the Northeast and its attendant weather patterns, conditions
needed to meet restaurant re-imaging and new opening targets, the
Company's ability to continue to develop and implement its
franchising program, the Company's ability to service its debt and
other obligations, the Company's ability to meet ongoing financial
covenants contained in the Company's debt instruments, loan
agreements, leases and other long-term commitments, unforeseen
costs and expenses associated with litigation, and costs associated
with improved service and other similar initiatives. Other factors
that may cause actual results to differ from the forward looking
statements contained herein and that may affect the Company's
prospects in general are included in the Company's other filings
with the Securities and Exchange Commission. As a result the
Company can provide no assurance that its future results will not
be materially different from those projected. The Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any such forward looking statement to
reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Invesco Frontier Markets... (AMEX:FRN)
Historical Stock Chart
From Nov 2024 to Dec 2024
Invesco Frontier Markets... (AMEX:FRN)
Historical Stock Chart
From Dec 2023 to Dec 2024
Real-Time news about Invesco Frontier Markets ETF (American Stock Exchange): 0 recent articles
More Friendly Ice Cream Corporation News Articles