Archived postings from March, 2009...

Casual dining stores need to close more stores to reach equilibrium with declining sales

Posted: Tue, March 17, 2009 at 1:29pm (CDT)

According to a report in Nation\'s Restaurant News, Morgan Stanley restaurant analyst says that casual-dining chains should close a net of 1,200 locations or about 7 percent of segment capacity, to restore a supply and demand equilibrium with restaurant consumers.
Nation's Restaurant News March 17, 2009

The freeze in SBA lending should end soon

Posted: Mon, March 16, 2009 at 12:04pm (CDT)

The Treasury plans to temporarily raise the SBA guarantee to 90 percent and waive fees of as much as $75,000 that are paid by borrowers. The SBA currently guarantees payment on 85 percent of a loan up to $150,000, and as much as 75 percent on loans of more than $150,000. The Treasury announced that it has also hired an investment manager who will be authorized to purchase securities backed by guaranteed portions of 7(a) loans packaged on or after July 1, 2008.
US Treasury March 16, 2009

Mill Road Capital charges Kona Grill with misrepresentations and fiduciary breaches in financing

Posted: Thu, March 12, 2009 at 6:26am (CDT)

Mill Road Capital describes itself as practicing \"Berkshire Hathaway\" style investing principles investing in businesses that generate cash and consistently earn above-average returns on capital. What the investing firm is doing messing around with Kona Gril is anyone\'s guess? Mill Road charges that the recent $1.2 million note deal that Kona made with certain shareholders failed to identify James Jundt, the father of CEO and Chairman Marcus Jundt, as the primary investor. Mill Road charges that Kona offered and granted materially better financing terms to the insiders.
PR Newswire March 11, 2009