The business revealed on Monday that the hedge fund Starboard Value is investing $200million into the having a hard time pizza business. Starboard might include another $50million by March29 Papa John’s will call Starboard Value CEO Jeffrey Smith as its new chairman, and it will include Anthony Sanfilippo, previous CEO of the video gaming business Pinnacle Entertainment, to the board.
“These results are disappointing to all of us,”Ritchie stated in a declaration. But we “are confident in the great growth potential for the brand, particularly with the support of our new partners,” he included, stating that the funds and know-how brought by the activist hedge fund, along with new menu products and imaginative marketing, will assist the business be successful. Ritchie likewise signed up with the board as part of the shakeup.
An unique committee has actually been trying to find methods to improve sales becauseSeptember Rumors swirled that the business may be putting itself up for sale. The business stated on Monday that the handle Starboard “was in the best interest of shareholders.”
Schnatter sent his own proposition to the board over the weekend. The previous creator stated he wanted to invest approximately $250million in the business, however he withdrew the proposition due to the Starboard offer.