Desmond and Beere buy O'Briens sandwich chain master franchise
Friday October 16 2009
Fast food entrepreneur Graeme Beere and concert promoter Denis Desmond finally sealed a deal yesterday to buy the master franchise for Ireland of the collapsed O'Briens sandwich chain.
The deal was thrashed out with O'Briens liquidator Paul McCann of Grant Thornton. Mr Beere declined to comment on the agreement yesterday. Mr Beere and Mr Desmond, who control the Abrakebabra chain, had previously signalled their interest in acquiring the O'Briens business, but hit hurdles after the High Court refused last month to annul 42 leases O'Briens held on premises around the country. The parent company had agreed the leases with landlords and then sub-let the premises to O'Briens franchisees. There are about 80 O'Briens outlets in the Republic.
However, it's understood that the liquidator will no longer have any remaining interest in any leases under his control, and that those leases are being returned to respective landlords. That would potentially enable franchisees to negotiate their own leases with landlords.
Details
Mr McCann declined to reveal the financial details of the transaction with Mr Beere and Mr Desmond's Impless investment vehicle, but said he was "very pleased" the O'Briens business will be "taken forward" by a "quality organisation". Established by Brody Sweeney in 1988, O'Briens Sandwich Bars went into examinership in July, with €6.4m of liabilities including €3.4m owed to Bank of Ireland. Mr Sweeney had expanded the business significantly in the past decade, awarding franchises to operators in Denmark, Saudi Arabia, Thailand, China and Britain.
Abrakebaba Investments (AIL) owns a number of franchised businesses in Ireland, including the Gourmet Burger chain, Yo! Sushi and Bagel Factory. Mr Desmond owns concert promotions firm MCD.
A large number of the 61 franchisees represented in court last month were opposed to a deal between the examiner and AIL. Many claimed they would be in a better position if the company was allowed to go into liquidation. Yesterday, Mr Beere said he was looking forward to working with the franchisees, to ensure they feel "renewed confidence in the brand".
- John Mulligan
Irish Independent
