WINGS CLIPPED AS EAGLE BOYS ENTERS ADMINISTRATION

WINGS CLIPPED AS EAGLE BOYS ENTERS ADMINISTRATION
THE Eagle Boys Australian Head Franchisor has entered into voluntary administration, with SV Partners called in to run the Brisbane head office on Thursday.

The 120 remaining franchisees will continue to trade as potential buyers are sought, and SV Partners investigate a restructure of the company.

"The Eagle Boys management team is looking forward to the prospect of growing the brand under new ownership and would like to thank Eagle Boys customers, franchisees and team members for their ongoing support during this time," the company has released in its official statement.

This comes after two years of unrest at the company.

Unhappy franchisees have aired their grievances publicly through the media, and Mitry Lawyers eight months ago began investigating a class action on their behalf.

It has been a sad fall from grace for a company that was for years considered a Brisbane success story.

Tom Potter founded Eagle Boys in 1987 in Albury, then opened the Brisbane head office in 1992.

Over 20 years he built the company into Australia's fourth-largest pizza maker.

He sold a majority stake to NBC Capital in 2007, which took the business on an aggressive period of growth.

It bought the Pizza Haven chain, implemented online ordering and scrapped the two-minute express pizza offering.

Potter initially remained involved in Eagle Boys as a consultant, but fell out with the new owners within two years.

By 2014, reports were emerging of unhappy franchisees and the company has been in unrest since that time.

Gold Coast-based Retail Food Group (ASX:RFG), which owns Crust Gourmet Pizzas and Pizza Capers, is rumoured to be amongst those being approached to buy Eagle Boys.

Eagle Boys currently has the third-highest market share of pizza restaurants in Australia, with 4.6% of the market, behind Pizza Hut (10.70%) and Domino's (25%), according to IBIS World figures.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

The cost of not communicating: How Whispir’s tailored messaging tech lifts engagement
Partner Content
While it is common for businesses to haggle with suppliers over small price differences...
Advertisement

Related Stories

Origin slapped with $17m fine for failing to protect vulnerable customers

Origin slapped with $17m fine for failing to protect vulnerable customers

Australian energy giant Origin Energy (ASX: ORG) has today been ord...

Volt’s spark fizzles out: Neobank closes with $113m in deposits

Volt’s spark fizzles out: Neobank closes with $113m in deposits

Customers of neobank Volt have been asked to withdraw all funds fro...

Fintech giant Airwallex breaks into New Zealand

Fintech giant Airwallex breaks into New Zealand

Three months after launching in Malaysia, global payments platform ...

Star Entertainment appoints Tyro Payments boss Robbie Cooke as new CEO

Star Entertainment appoints Tyro Payments boss Robbie Cooke as new CEO

Embattled casino and resorts operator The Star (ASX: SGR) has appoi...