McCormick & Schick, one of the largest seafood restaurant chains in the United States which has been the subject of an intense takeover battle, has just reported losses and a drop in sales for its latest financial period.
The company, which has more than 80 fish restaurants across America, posted a loss for the second financial quarter of $3-million, with income down slightly to $88.7 million. The company attributed this to restructuring and other charges of around $1.8 million in relation to the recent takeover bid for the business.
In April Tilman J. Fertitta, owner and founder of rival Landry's Restaurants Inc. offered to buy the McCormick & Schmick's Seafood restaurant chain in a deal worth an estimated $137.2 million, which led a stand-off situation. After McCormick and Schimick put the company up for sale in July, Mr Fertitta dropped his hostile bid, offering to make an approach through due diligence instead.
McCormick & Schmick's chief executive Bill Freeman said his company was continuing to revitalise the business, even as it considered a possible sale. This including modernising many of the restaurants and improving the seafood menus.
Mr Freeman added: “Although we are discouraged by the pace of recovery in a portion of our portfolio, we are encouraged by the positive results we are seeing in both sales trends and guest satisfaction scores as a result of our integrated strategic revitalisation programme.By delivering value to our guests, investing in service and hospitality initiatives, and remodelling our facilities, all of which will have an ongoing positive impact on our guest experience, we believe we will continue to provide long-term value to our stockholders.”
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