Eagle Boys still flying at Tweed Heads South
EAGLE Boys has plunged into voluntary administration but the operator of the Tweed Heads South outlet has dismissed concerns about the immediate future, declaring “it’s business as usual”.
The nation’s third largest pizza chain called in administrators SV Partners last week but insists its 120 or so franchisees, including the Tweed Heads South store, will continue to trade while a potential sale is negotiated.
Tweed Heads South franchisee Jessica Hudson said the appointment of administrators would have no immediate impact on local operations.
“At a store level there will be no change,” she said.
“It’s business as usual.”
Ms Hudson refused to make any further comment, instead directing enquiries to Eagle Boys’ head office.
The Australian company confirmed via a statement the administrators had assumed control of day-to-day operations at head office with a focus on continuing to trade while progressing a potential sale of the business.
The administrators have also been tasked with identifying restructuring measures.
Company founder Tom Potter spent 20 years building the franchise before selling his majority stake to an equity firm in 2007.
Mr Potter has since accused the firm of making strategic mistakes, pushing up prices and slashing advertising.
He said equity firm NBC dumped a beloved policy of the chain, which ensured pizzas were ready for pick up within two minutes of the customer arriving in store.
“That spelled the beginning of the end,” Mr Potter said.
“When a company is losing thousands of customers, and (it) does not recognise this as a problem, the business is doomed.”
It was reported last year that Eagle Boys was attempting to raise $20 million to pay down debts and open 50 new stores.
At the time, there was also talk of a potential class action as franchisees claimed Eagle Boys drove them to ruin.
There were also allegations price wars in the notoriously competitive industry had led to franchisees underpaying workers and drivers.