THE demise of Eagle Boys is 'no surprise' says its founder Tom Potter (pictured), but he holds out hope that the business he sold to NBC Capital in 2007 can be restored by the right owner.
NBC Capital called in administrators SV Partners on Thursday to take care of the Brisbane-based national franchisor.
"This is no surprise, because the business has been in decline for some time and the company has continued to do very little to halt that problems, or even accept there were problems," Potter told ABC Gold Coast Mornings presenter Nicole Dyer today.
However, Potter, holds out hope that the right buyer can resurrect the company, which remains the third-largest pizza maker in Australia by market share according to IBIS World, saying 'there is no reason (Eagle Boys) should have gone backwards'.
Potter listed increased prices, reduced advertising spends, the decision to scrap the two-minute pizza guarantee and the cancellation of the planned move into drive throughs as among the things that led to the business' downfall.
"When you put up prices, take away the point of difference and take away the advertising spend, it is a recipe for disaster."
He believes Eagle Boys remains good value for the right operator. Potential buyers have been speculated as Retail Food Group (ASX:RFG), Domino's (ASX:DMP) and an unnamed buyer from outside the pizza space.
"If the right company comes in and buys Eagle Boys it can only be a positive. Let's face it, it can only get better from here."
Eagle Boys has around 130 remaining franchisors, down from a peak of about 340.
Potter founded the business in Albury and opened the Brisbane head office in 1992.
In 2007, he sold 85 per cent of the business to NBC, and the remaining 15 per cent to six members of the management team at the time.
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