Shakey's Parent Negotiates Chain's Sale
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Garden Grove, California-Inno-Pacific Holdings of Singapore is negotiating the sale of its 61-unit Shakey's pizza chain to Jacmar Cos. of Alhambra, California, the largest remaining Shakey's franchisee with 19 units, IPH chairman Chin-Yong Wong said.
Jacmar reportedly made an unsuccessful bid for Shakey's two years ago. The date of a Los Angeles County Superior Court trial involving multiple franchisee allegations of breach of contract by Shakey's and IPH was continued from May 12 until July 14 at the request of the franchisees and Jacmar. Wong said IPH had been negotiating the sale of Shakey's with Jacmar, and the requested trial "time out" is for Jacmar "to conduct due diligence" and "negotiate with the plaintiff/franchisees."
Shakey's outside counsel, Mitchell Shapiro of Jenkens & Gilchrist, said he had "every reason to believe" a memorandum of understanding between IPH and Jacmar would be signed soon and lead to a formal agreement of sale. If a formal deal is reached, Jacmar would be left to deal with the franchisees who filed the lawsuit against Shakey's and its parent. -Nation's Restaurant News