CULVER CITY Calif. Plans to sell the Sizzler steak brand have been put on hold because of declining conditions in the financial markets, officials were scheduled to announce Monday.
Sydney, Australia-based Pacific Equity Partners, the brand's current owner, hired an investment banking firm Houlihan Lokey in February to find a buyer for Sizzler USA, the chain's domestic franchisor, as well as its international businesses. A deal was expected to close by this summer. PEP bought Sizzler in 2005 as part of its $210 million buyout of Sizzler's then-parent Worldwide Restaurant Concepts Inc. That deal included the then-21-unit Pat & Oscar's chain as well as more than 100 KFC units in Australia. Sizzler USA operates or franchises more than 300 units in the United States.
“We have gotten a lot of interest from potential buyers,” said Kevin Perkins, acting chief executive of Sizzler USA. “However, the restaurant and credit markets have declined considerably since earlier this year, so we made the decision to postpone the sale process until market conditions improve.”
It was not clear, however, whether a new chief executive would be hired to replace former president and chief executive Ken Cole, who stepped down in February to head the casual-dining chain Quaker Steak & Lube.
Officials said operations have not been impacted by the change in plans for the sale. This year, Sizzler is scheduled to open new units in Houston; San Diego and Sacramento, Calif.; and Kalispel, Mont., as well as the chain’s first restaurant in Mexico.
The company has also developed a more contemporary design and is rolling out new value-oriented menu items designed to build traffic, including a new menu section called “American Classics.” The array includes several dishes priced under $10.
