Shoney's, Inc. Signs Letter of Intent To Sell Distribution and Manufacturing Operations

Apr 19, 2001, 01:00 ET from Shoney's, Inc.

    NASHVILLE, Tenn., April 19 /PRNewswire/ --
     Shoney's, Inc. (OTC Bulletin Board:   SHOY) announced today it has signed a
 letter of intent to sell its wholly owned subsidiary, Commissary Operations,
 Inc. ("COI") to COI Acquisition Company, a Tennessee corporation.  Closing of
 the transaction is contingent upon a number of conditions, including the
 negotiation of a definitive stock purchase agreement, the receipt of an
 opinion that the transaction is fair to Shoney's shareholders from a financial
 perspective, the consent of Shoney's lenders and the completion of financing
 by COI Acquisition Company.  The proposed purchase price was not disclosed.
 Shoney's indicated that it expected a definitive stock purchase agreement to
 be executed within the next three weeks and expected the closing of the
 transaction to occur approximately 60 days thereafter.
     The sale of COI, Shoney's distribution and manufacturing arm, is not
 expected to affect service at either of the Company's two restaurant concepts,
 Shoney's Restaurants or Captain D's.  Both concepts have long-term contracts
 with COI.  COI also provides services to a large number of Shoney's and
 Captain D's franchisees as well as to companies unrelated to Shoney's, Inc.
     "COI continues to be a first class distribution and manufacturing company.
 Although it has been a successful offshoot of the Shoney's restaurant
 businesses, we believe that its linkage to a major competitor has made it
 difficult to develop significant business with unrelated restaurant
 companies," remarked Mike Bodnar, CEO of Shoney's, Inc.  "The proceeds of this
 transaction will allow us to further reduce our overall debt," Bodnar added.
     Haney Long, the President and Chief Operating Officer of COI, along with
 CFO Lloyd Baldridge and Vice President of Operations Dan Staudt, will head the
 newly formed COI Acquisition Company.  "Although we look forward to our
 continued service to the Shoney's and Captain D's restaurants we are excited
 about our prospects for new growth," stated Long.
     Shoney's, Inc. is headquartered in Nashville, Tennessee.  As of April 19,
 2001, Shoney's, Inc. owned, operated and franchised 1,000 restaurants in 27
 states, including 590 Company-owned and 410 franchised restaurants, under the
 names Shoney's Restaurants and Captain D's Seafood Restaurants.  Shoney's,
 Inc. is traded on the OTC Bulletin Board under the symbol "SHOY."
     Certain statements in this release are "forward looking statements" within
 the meaning of the Private Securities Litigation Reform Act of 1995.  All
 forward looking statements involve risks and uncertainties which, in many
 cases, are beyond the control of the Company and could cause actual results to
 differ materially.  The Company undertakes no obligation to update any forward
 looking statements, or to make any other forward looking statements, whether
 as a result of new information, future events or otherwise.  Further
 information on factors which could affect the Company's financial results is
 contained in the Company's filings with the Securities and Exchange
 Commission, including the ability of management to implement successfully its
 strategy for improving Shoney's Restaurants performance, the ability to effect
 asset sales consistent with the projected proceeds and timing expectations,
 the results of pending litigation, adequacy of management personnel resources,
 shortages of restaurant labor, commodity price increases, product shortages,
 adverse general economic conditions, turnover and a variety of other factors.
 
 

SOURCE Shoney's, Inc.
    NASHVILLE, Tenn., April 19 /PRNewswire/ --
     Shoney's, Inc. (OTC Bulletin Board:   SHOY) announced today it has signed a
 letter of intent to sell its wholly owned subsidiary, Commissary Operations,
 Inc. ("COI") to COI Acquisition Company, a Tennessee corporation.  Closing of
 the transaction is contingent upon a number of conditions, including the
 negotiation of a definitive stock purchase agreement, the receipt of an
 opinion that the transaction is fair to Shoney's shareholders from a financial
 perspective, the consent of Shoney's lenders and the completion of financing
 by COI Acquisition Company.  The proposed purchase price was not disclosed.
 Shoney's indicated that it expected a definitive stock purchase agreement to
 be executed within the next three weeks and expected the closing of the
 transaction to occur approximately 60 days thereafter.
     The sale of COI, Shoney's distribution and manufacturing arm, is not
 expected to affect service at either of the Company's two restaurant concepts,
 Shoney's Restaurants or Captain D's.  Both concepts have long-term contracts
 with COI.  COI also provides services to a large number of Shoney's and
 Captain D's franchisees as well as to companies unrelated to Shoney's, Inc.
     "COI continues to be a first class distribution and manufacturing company.
 Although it has been a successful offshoot of the Shoney's restaurant
 businesses, we believe that its linkage to a major competitor has made it
 difficult to develop significant business with unrelated restaurant
 companies," remarked Mike Bodnar, CEO of Shoney's, Inc.  "The proceeds of this
 transaction will allow us to further reduce our overall debt," Bodnar added.
     Haney Long, the President and Chief Operating Officer of COI, along with
 CFO Lloyd Baldridge and Vice President of Operations Dan Staudt, will head the
 newly formed COI Acquisition Company.  "Although we look forward to our
 continued service to the Shoney's and Captain D's restaurants we are excited
 about our prospects for new growth," stated Long.
     Shoney's, Inc. is headquartered in Nashville, Tennessee.  As of April 19,
 2001, Shoney's, Inc. owned, operated and franchised 1,000 restaurants in 27
 states, including 590 Company-owned and 410 franchised restaurants, under the
 names Shoney's Restaurants and Captain D's Seafood Restaurants.  Shoney's,
 Inc. is traded on the OTC Bulletin Board under the symbol "SHOY."
     Certain statements in this release are "forward looking statements" within
 the meaning of the Private Securities Litigation Reform Act of 1995.  All
 forward looking statements involve risks and uncertainties which, in many
 cases, are beyond the control of the Company and could cause actual results to
 differ materially.  The Company undertakes no obligation to update any forward
 looking statements, or to make any other forward looking statements, whether
 as a result of new information, future events or otherwise.  Further
 information on factors which could affect the Company's financial results is
 contained in the Company's filings with the Securities and Exchange
 Commission, including the ability of management to implement successfully its
 strategy for improving Shoney's Restaurants performance, the ability to effect
 asset sales consistent with the projected proceeds and timing expectations,
 the results of pending litigation, adequacy of management personnel resources,
 shortages of restaurant labor, commodity price increases, product shortages,
 adverse general economic conditions, turnover and a variety of other factors.
 
 SOURCE  Shoney's, Inc.