News

Afton, 241 Pizza parent, amends restructuring deadline

August 17, 2004

BURLINGTON, Ontario — Afton Food Group, Ltd., franchisor of the 241 Pizza chain, received an extension for filing its bankruptcy restructuring plans.

According to a news release, the company filed for bankruptcy on July 16, and had intended to file its restructuring plan by Aug. 15. The plan now is due Oct. 13.

Afton said that, until then, it will continue efforts to "strengthen the franchise system and reduce operating costs."

Afton, which also operates the Robin's Donuts chain, has struggled over the past three years to grow its system under the burden of an increasing debt load and sagging sales. In 2003 it lost CAN $25.8 million (U.S. $19.7 million) on sales of CAN $19.6 million (U.S. $14.9 million). In 2002 Afton lost CAN $17.2 million (U.S. $13.1 million) on sales of CAN $26.4 million (U.S. $20.2 million).