Sept. 16, 2003
VANCOUVER, B.C. -- Struggling with debt and slow sales, 222 Pizza Express CEO Sarbjeet Mandair wrote in a recent investor release that his company is pursuing extended negotiations with creditors, cutting its corporate staff to three and postponing a new menu rollout.
According to the release, Mandair wrote, "As previously announced, we remain focused on reducing our ongoing liabilities to an affordable level. ... Due to a shortage of funds and manpower, plans to try a new food menu and catering program has been postponed to late September or early October. By October 2003, we hope to have a much smaller but profitable model of the Pizza 222 Express system."
Mandair anticipates creditors will receive his proposal to save what is believed to be a 10-store system centered on fleet truck delivery. Refinancing, it appears, is key to that strategy.
"Once the liability and the method of payments are negotiated to a manageable level, we hope to inspire and attract new investors," Maindair wrote. "Many key shareholders are taking a keen interest in the progress of our negotiations with the creditors and those shareholders remain supportive and look forward to a positive outcome."