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Centerplate hires adviser to assess sale, other alternatives

STAMFORD Conn. Centerplate Inc., a manager of foodservice operations in sports and entertainment venues, said it has retained UBS Securities to assess a sale or other changes in the contractor’s capital structure.

Bob Pascal, Centerplate’s vice president of marketing, told Nation’s Restaurant News that the publicly owned company is entertaining the possibility of soliciting a buyout by a private-equity firm.

“There are a whole host of options so I’m sure that could be a potential one,” he said.

However, he added: “This is the first day of an exhaustive process that could take up to six months. We’re going to move through the process expeditiously. It’s tough to speculate what is most likely [to happen].

Separately, Centerplate said it was seeking to amend its senior credit facility in order to modify what it called "restrictive" financial covenants and gain flexibility on capital expenditures and acquisitions.

The company on Wednesday reported a net loss of $11.2 million, or 53 cents a share, for the first quarter ended April 1, compared with a net loss of $8 million, or 36 cents a share, in the same quarter a year earlier. Officials said the increased loss was the result of a decline in operating income and increased interest expense. Net sales were up 6.3 percent to $133.3 million.

The company recently announced that it was not selected to provide foodservices at New York’s new Yankee Stadium, which is set to open next year. Centerplate manages the feeding facilities at the current stadium.

TAGS: Finance News
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