The franchisor of national pizza chain Eagle Boys has entered voluntary administration ahead of a potential sale.
However, the appointment of external managers does not extend to Eagle Boys franchises, which are owned by franchisees and continue to operate on a “business as usual” basis, Eagle Boys said in a statement late last week.
Administrators David Stimpson and Terrence Rose from SV Partners were appointed to Eagle Boys Dial-A-Pizza Pty Ltd on the evening of Thursday, July 14.
Also included in the appointment are related companies Eagle Girls Pty Ltd, EBA Pizza Holdings Pty Ltd, EB Pizza IP Holdings Pty Ltd and EB Stores Pty Ltd.
Eagle Boys said in the same statement the administrators are “identifying restructuring measures” and all Eagle Boys stores will continue to trade. The Eagle Boys national franchise is for sale.
“The Eagle Boys management team is looking forward to the prospect of growing the brand under new ownership and would like to thank Eagle Boys customers, franchisees and team members for their ongoing support during this time,” the company said.
Eagle Boys was founded in Albury, New South Wales, in 1987 by entrepreneur Tom Potter.
The business was purchased by private equity group NBC Capital in 2007 and in 2013, NBC Capital rebranded the pizza chain and was pursuing plans to expand in India and Papua New Guinea.
While Eagle Boys once boasted as many as 340 stores across the country, by October 2014, the chain had 169 outlets listed on its website. The current store count, according to the Eagle Boys website, is 127 outlets.
A number of former Eagle Boys franchisees have shared stories of financial hardship and expensive legal battles with the chain, including one who told SmartCompany he and his partner lost “upwards of $300,000” from owning a franchise between June 2010 and January 2013. While the franchisee did not lay all the blame for the store’s troubles with Eagle Boys, he said the experience “destroyed” him and his wife financially, and took a toll on their personal health.
SmartCompany has contacted Eagle Boys and NBC Capital for further comment.