Jack in the Box has announced that the franchise may be sold to maximise shareholder value in the company.
According to a company press release, the process of looking for buyers has already begun. However, neither a time frame for the sale or a particular buyer have been confirmed.
The company statement explained, “The company has had discussions with potential buyers; however, it noted that there can be no assurance that the exploration of strategic and financing alternatives will result in a transaction.”
Strained relationships between the fast food chain and its franchises, pressure from activist investors, and poor performance when compared to rival companies have all contributed to the need for the sale, according to Fox Business.
Jack in the Box, however, will not go quietly. In that same press release, the company commented, "That said, in the absence of a strategic transaction the company remains committed to its previously communicated plan to have a new capital structure in place by the end of the first half of fiscal 2019. That capital structure could include, among other things, a securitization or bond issuance."
Will the fast food chain be sold to the highest bidder, or find refuge in loans to prevent bankruptcy? Keep reading us here at Deli Market News for the latest developments, and all your specialty food news needs.