BOCA RATON Fla. Sun Capital Partners Inc., just like the restaurant companies it owns, is feeling the sting of today’s economic climate.
The private-equity firm, which owns 10 restaurant companies including Friendly Ice Cream Corp., Boston Market Corp. and Real Mex Restaurants Inc., said Friday that it would lay off 23 employees, or about 10 percent of its workforce.
The firm, with assets totaling more than $10 billion, went on a restaurant shopping spree during the past few years, most recently acquiring such brands as Smokey Bones Barbeque & Grill, Timothy’s World Coffee and high-end operator Restaurants Unlimited. The corporate layoffs do not affect the firm’s portfolio companies.
“This staff reduction ... leaves our firm with all the resources needed to continue to focus on the things we do best -- investing in turnarounds, underperforming businesses and special situations, and creating value by bringing our operational expertise and experience to bear,” a company statement said. “We believe this economic environment offers an excellent opportunity to achieve historic returns for our investors.”
In 2008, Sun Capital saw certain retail holdings, like the Mervyn’s department store chain and the Lilian Vernon catalogue company, file for bankruptcy. Companies within the struggling restaurant and retail industries represent about 43 percent of Sun Capital’s portfolio. Restaurant companies alone represent about 11 percent.
