McDonald's Corp. announced plans today to acquire strugglingrestaurant chain Boston Chicken Inc. through its Golden RestaurantOperations Inc. subsidiary.
McDonald's will obtain 751 Boston Market restaurants and thefranchise rights for an additional 108 restaurants for $173.5 millionin cash and the assumption of some liabilities. The sale will notinclude Boston Chicken's interest in Einstein/Noah Bagel Corp.
The sale will be completed as part of Boston Chicken's Chapter 11reorganization plan, according to officials of both companies. Theplan will be filed in December.
Denver-based Boston Chicken sought U.S. Bankruptcy Courtprotection from its creditors in October 1998 as it attempted toreorganize its finances while continuing to operate.
"The brand is well-established, with excellent employees, qualityproducts, loyal customers and future growth potential," McDonald'sChairman Jack Greenberg said in a statement. "Selected sites, whereappropriate, will help support domestic restaurant growth forMcDonald's, and accelerate opportunities for Chipotle Mexican Grilland Donatos Pizza over the next few years."
Between May 1992 and 1996, Boston Chicken grew from 34 stores inthe Northeast to 1,143 nationwide before financial problems forced itto begin closing shops.
Along the way, meatloaf and ham were added to the chicken andmashed potatoes on the menu. The company also invested in the bagelchain.
Oak Brook-based McDonald's is the world's leading restaurantchain, with more than 25,000 restaurants.
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