The company has reported that 7716443 Canada Inc., an affiliate of Soul Foods Group, a U.K. based franchisee of Yum! Restaurants International, has satisfied both its due diligence and financing conditions with respect to the potential sale of all of the company’s restaurants in Ontario and British Columbia. The transaction is subject to customary closing conditions, adequate landlord and material contract consents, any approvals as required by law and by the company’s governing documents and consent to the transaction by Yum! Restaurants International and Priszm’s senior debt holder. Although there is no guarantee, the required approvals will be obtained, or that the remaining conditions will be satisfied, the transaction is scheduled to close Feb. 28, unless the parties agree otherwise.
The company also reported that it remains in discussions with its senior debt lender and franchisor on various options to restructure the business, which may include the sale of all assets.
The company’s interim agreement with its franchisor, Yum! Restaurants International, with respect to the franchise agreements for 70 restaurants expired on Jan. 15, as did its interim agreement to defer unpaid continuing fees.
