SAN DIEGO Officials of the 19-unit Pat & Oscar’s fast-casual chain said it would likely be spun off within a year by Australian-based private-equity owner Pacific Equity Partners, which also owns the Sizzler brand.
San Diego-based Pat & Oscar's was in talks with a potential buyer recently, but the deal was squelched by the recent credit market crunch, said its chairman and chief executive, John Wright.
"We're going to pull back until the situation stabilizes and look at it again after the holidays," he said.
Kevin Perkins, chairman and CEO of Sizzler U.S.A., which also was acquired by Pacific Equity in 2005, said its goal is to grow the Sizzler brand in the United States.
Six Pat & Oscar's units have been closed since the acquisition, but two new prototype units have opened and the chainÕs has revamped its menu and eliminated trans fats.
Wright said the chain, which intends to launch a new franchise program, has the cash flow to open two to three new units annually, but that it hopes a new owner "would fund more aggressive growth than [Pacific Equity] was prepared to do."