BJ’s Restaurants has entered into a cooperation agreement with Act III Holdings LLC, an investment company that invests in emerging restaurant and entertainment concepts and is backed by Panera Bread founder Ron Shaich.
Per an 8-K filed by the casual dining chain, Act III has the option to buy up to 876,949 shares. The cooperation agreement also allows Act III and its affiliates voting commitments and a customary standstill (no more share acquisitions) through its expiration date of May 4, 2027.
During the early months of COVID, Act III and T. Rowe Price Associates Inc. made a $70 million investment in Huntington Beach, Calif.-based BJ’s Restaurants Inc. The updated agreement comes as BJ’s undergoes significant changes amid sluggish sales, including the abrupt resignation of chief executive officer Greg Levin in late August and pressure from activist investors.
Bradford Richmond, who has served on the company’s board of directors since February 2024, is now serving as interim CEO. In September, Lyle Tick was named president and chief concept officer.
“We are excited to enter into this cooperation agreement with BJ’s Restaurants, Inc.," Shaich said in a statement. “We strongly support the actions that BJ’s board of directors has taken, including the appointment of new leadership to guide the company through its next chapter of growth and value creation. After engaging with BJ’s board and management, we are confident in the discipline and financial expertise that Mr. Richmond is bringing to the company and impressed by Mr. Tick’s vision and strategy for unlocking the full potential of the BJ’s brand. We fully support their focus and ambition and are excited to reaffirm our commitment to the Company. We look forward to collaborating with BJ’s to help them exceed their goals.”
In a statement, BJ’s board chair Lea Ann Ottinger added that the cooperation agreement with Act III will support the chain as it develops a strategic plan.
Act III’s existing portfolio investments also include CAVA, Tatte Bakery, Life Alive Organic Café, and Level99.
Founded in 1978, BJ’s owns and operates over 215 casual dining restaurants in 31 states.
Contact Alicia Kelso at [email protected]
