• Looming financial woes threaten Inno-Pacific, Shakey's pizza parent

    Tags: Shakey's

SINGAPORE—Auditors of Inno-Pacific Holdings say current and potential financial crises threaten the company's viability as a going concern.

According to The Business Times, the firm lost S$1.89 million (U.S. $1.1 million) in 2003, and it faces an ongoing dispute over a tax liability of S$3.38 million (U.S. $2 million) assessed over several years.

Additionally, franchisees of Inno-Pacific's only revenue-generating subsidiary, Garden Grove, Calif.- based Shakey's, Inc., sued the 61-unit pizza chain for $20 million in a breach of covenant suit in 2002.

Shakey's Inc. claims the lawsuit lacks merit and is defending against the charges. Its chairman, Wong Chin-Yong, was sued for fraud by the franchisees, but the charged was dismissed in February.

A trial in the Shakey's case was scheduled for late March, but was moved to May.

In a report filed with the Singapore Stock Exchange, Inno-Pacific's auditors, Deloitte & Touche, wrote that the company faces a grim fate if it can't fight off the tax liability charge.

"Pending the final settlement of these assessments, we have presently not been able to satisfy ourselves as to the recoverability of the amount of tax suspense," the auditors wrote.

Additionally, the auditors noted that should Shakey's franchisees prevail in the lawsuit, Inno-Pacific lacks the ability to meet potential settlement obligations.

Read related Shakey's stories by clicking here.

Related Content

User Comments – Give us your opinion!
Products & Services

ExpressNet

http://global.networldalliance.com/new/images/products/ExpressNet_iix.gif

1428/ExpressNet

Granbury Websites

http://global.networldalliance.com/new/images/products/6815.png

6815/Granbury-Websites

Pepperoni

http://global.networldalliance.com/new/images/products/6787.png

6787/Pepperoni

PeopleMatter SCHEDULEā„¢

http://global.networldalliance.com/new/images/products/4628.png

4628/PeopleMatter-SCHEDULE

Enterprise Solutions

http://global.networldalliance.com/new/images/products/4124.png

4124/Enterprise-Solutions

Customized Menu Board Content

http://global.networldalliance.com/new/images/products/6689.png

6689/Customized-Menu-Board-Content

FireFly Point-of-Sale

http://global.networldalliance.com/new/images/products/4282.png

4282/FireFly-Point-of-Sale

Solutions

http://global.networldalliance.com/new/images/products/4551.png

4551/Solutions

Call Center Ordering

http://global.networldalliance.com/new/images/products/5939.png

5939/Call-Center-Ordering

Remote Service | Content Management Service

http://global.networldalliance.com/new/images/products/6685.png

6685/Remote-Service-Content-Management-Service

Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.