Suzieq
Veteran Member
By JD Malone
The Columbus Dispatch
Thursday April 30, 2015 7:13 AM
*Bob Evans Farms said yesterday that it plans to close 20 restaurants and let go of its head of human resources.
The New Albany-based company did not disclose the locations of the stores to be closed but said the restaurants being targeted are underperforming and mostly outside Ohio. All of the closings will be completed this year; most will occur in May.
“Closing a restaurant is a difficult decision, as it directly impacts our guests and employees,” said Mark Hood, chief financial officer, in a statement. “These restaurants, however, despite efforts to improve performance, were not meeting expectations.”
The company has about 560 locations.
Joe Eulberg, executive vice president of human resources, was laid off as part of an ongoing restructuring plan, Hood said. Eulberg had been with the company for more than seven years. Eulberg describes himself on his LinkedIn profile as a leader of the relocation of Bob Evans’ headquarters to New Albany.
The relocation project, which cost $48 million, was criticized by activist investor Thomas Sandell, who has pushed for a variety of changes at the company. After a prolonged proxy fight, Sandell successfully placed four of his nominees on the company’s board of directors last year.
The company’s financial performance has flagged for more than a year, and same-store sales have trailed those of competitors. The board let go CEO Steven Davis in December. The company is seeking a new chief executive.
“We aren’t waiting for a new CEO to do anything,” Hood said.
After a disappointing third-quarter earnings report in early March, the company’s stock dropped 22 percent in one day.
The closed restaurants will be sold, and proceeds are expected to total as much as $17 million.
Employees affected by the closings will be offered positions in other stores where possible, and anyone laid off will receive severance pay, Hood said.
The cost of closing the restaurants could reach $5.2 million.
The company said it believes the closings will improve overall profitability.
*(Fair Use)
Link: http://www.dispatch.com/content/stories/business/2015/04/29/bob-evans-closing-20-restaurants.html
