MONTREAL, Nov. 5, 2015 /CNW Telbec/ - Imvescor Restaurant Group Inc. ("Imvescor" or the "Company") (TSX: IRG) announced today that it will enter into a management agreement (the "Management Agreement") with Raymond Chabot Inc. in its capacity as receiver of 451344 Canada Inc., formerly carrying business under the trade name of "Aliments T&N Foods" ("T&N"), to restart and manage the operations of the plant located in Lachine, Québec (the "Plant") where T&N manufactured Mikes® brand pizza products sold under Imvescor's trademarks.
The Management Agreement will be entered into in the context of the issuance by the Québec Superior Court (the "Court") of an order in the context of T&N's receivership proceedings under the Bankruptcy and Insolvency Act (the "BIA"). Under the Management Agreement, Imvescor will perform all duties and assume all expenses and responsibilities pertaining to the manufacturing of the products and will collect any and all revenues generated by the operations conducted at the Plant while under its management.
"T&N has been the sole supplier for Mikes® retail branded proprietary pizza since the inception of that product line. Recently T&N's financial situation has been challenging and we have been diligently monitoring T&N's status and reviewing possible alternatives. On October 9, 2015, the secured creditors of T&N appointed a receiver and we took immediate action to ensure a continuity of supply. We have temporarily taken over operations of the plant and believe that leveraging our experience in the food manufacturing industry will best enable us to continue to meet the demands of our grocery partners. Honouring our commitments to our customers is fundamental to our values as a company. We are not acquiring T&N and therefore we have no liability for prior acts or debts incurred by T&N. We do not believe this action will have any material financial impact. As the situation evolves, we will continue to monitor and be open to alternatives with a view of securing supplies, including, without limitation, seeking alternative suppliers and partnering with any potential acquirer of T&N's assets." said Frank Hennessey, President and Chief Executive Officer of Imvescor.
About Imvescor Restaurant Group Inc.
Imvescor Restaurant Group Inc. is a dynamic and innovative organisation in the family and casual dining restaurant industry. The Company is a franchise and licensing business that operates restaurants in Eastern Canada under four banners: Pizza Delight®, operating primarily in Atlantic Canada, in the family/mid-scale segment, Trattoria di Mikes® and Scores®, operating primarily in Québec in the family and casual dining segments and the take-out and delivery segments, and Bâton Rouge®, operating in Québec, Ontario and Nova Scotia in the casual dining segment. The Company also licenses to third parties the right to manufacture and sell prepared food products under the Pizza Delight®, Trattoria di Mikes®, Scores® and Bâton Rouge® brands and through its wholly-owned subsidiary, Groupe Commensal Inc. manufactures and sells vegetarian branded food products in grocery stores and retail outlets under the Commensal® brand.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, including, but not limited to, statements regarding the BIA proceedings of T&N and the Management Agreement and their possible impacts on the Company, statements related to the Company's business objectives, estimates, outlook, strategies and priorities and all other statements other than statements of historical facts. All statements contained in this press release other than statements of historical facts, are "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can generally be identified by words such as "may", "should", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook" and similar expressions. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable securities laws.
Although the forward-looking statements contained herein are based on information currently available to the Company's management and on the current assumptions, opinion, intentions, plans, expectations and estimation made by the Company's management in light of its experience and perception of historical trends, current conditions and expected future developments (such as the Company's future growth, results of operations, performance and opportunities as well as the future of the economic environment in which it operates), as well as other factors that the Company's management believes are appropriate and reasonable in the circumstances and on the date of this press release, there can be no assurance that such assumptions, opinion, intentions, plans, expectations and estimation will prove to be correct or that actual results will be consistent with these forward-looking statements. The Company does not assume any future significant acquisitions, dispositions, special dividends, share purchases, impairment charges or one-time items.
Forward-looking statements involve known and unknown risks, uncertainties and other factors outside the Company's control. A number of factors could cause the actual results of the Company to differ materially from the results discussed in the forward-looking statements, including, but not limited to: the Company's dependence on royalty stream, risks associated with quality control, food borne illnesses and health concerns, adverse changes to economic conditions, potential litigation and other complaints, the Company's ability to respond to various competitive factors affecting its operations, the impact of an increase in Company-owned restaurants, compliance with government regulations, the impact of sales tax upon System Sales, the Company's dependence on key personnel and third parties, the closure of restaurants, changes in laws concerning employees, changes in the Company's relationships with its employees, changes in consumer preferences, the availability and quality of raw materials, franchise development and growth of the Company's royalties, risks associated with franchise regulations, compliance with regulations governing alcoholic beverages, the protection of the Company's intellectual property, the Company's retail products dependence on the strength of the Company's restaurant brands, environmental risks and regulations, the Company's dependence on technology, inherent risks associated with internal control over financing reporting, the indebtedness of the Company and the restrictive covenants to which it is subject and the risk associated with the Company's dividend policy and other factors referenced in the Company's Annual Information Form and the Company's other continuous disclosure filings which are available on SEDAR at www.sedar.com. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully
Forward-looking statements are provided herein for the purpose of giving information about the Company's current strategic priorities, expectations and plans, allowing investors and others to get a better understanding of the Company's business outlook and operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes and should not place undue reliance on the forward-looking statements contained in this press release. The Company assumes no obligation to update such forward-looking statements to reflect new information, future events or otherwise, except as required by applicable securities laws. Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other special items or of any transactions that may be announced or that may occur after the date of this press release. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. The Company therefore cannot describe the expected impact in a meaningful way or in the same way it presents known risks affecting the business. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
SOURCE Imvescor Restaurant Group Inc.
For further information: Imvescor: 514.341.5544 http://www.imvescor.ca; Investor Relations: [email protected]; Frank Hennessey, President and Chief Executive Officer; Tania M. Clarke, Chief Financial Officer; Media Relations: ACJ Communication - Daniel Granger 514.840.7990