Burger King sold to Starbucks owners in New Zealand

Fast food chain Burger King was sold to investment firm Tahua Partners, the owners of the Starbucks franchise in New Zealand.

Recipients of the parent companies of the local Burger King business, Brendon Gibson and Grant Graham of Caliber Partners (formerly KordaMentha), have signed an agreement to sell the business.

Subject to fulfillment of the conditions, Tahua Partners will purchase Antares Restaurant Group Limited for an undisclosed sum.

The recipients expect to close the deal next week and Tahua Partners will take over the business from November 1.

The current Antares management team will continue to operate.

A group of companies associated with Burger King was placed on hold in April, owing $ 52 million, after the mandatory closure of stores under lockdown due to Covid-19 hit the business hard.

Even before the pandemic, Burger King had lost the support of its parent company Blackstone, which had decided not to bring additional capital to the business.

Blackstone bought the Burger King entities in 2011 for $ 108 million.

At the time of bankruptcy, the chain had 83 stores and employed more than 2,600 employees.

It has since closed five stores and now operates 78 restaurants and employs 1,800 people across the country, according to a statement from recipients.

“This is an excellent result for Burger King’s company, staff, owners, vendors and loyal guests, and we would like to take the opportunity to thank all of those stakeholders for their support during what has been a disturbing last six months, “Gibson said. .

“Securing a going concern sale in today’s environment is a testament to the drive and commitment of Antares’ management team and all of its employees,” he said.

Burger King is New Zealand’s third-largest quick-service restaurant chain.

In 2018, Tahua Capital purchased the assets for the Starbucks business in New Zealand from Restaurant Brands for $ 4.4 million, following a period of declining sales and unprofitable stores.

Tahua CEO John Elliott said the company planned to invest in the Burger King New Zealand platform and its people.

“Building on the strength of the Burger King brand and the loyalty of our valued team members, vendor partners and guests, we see great potential for the brand in New Zealand,” said Elliot.

“Our experience in the local industry means that we are in a unique position to help the company reach its full potential in the New Zealand market and ensure that it is a high-performing hospitality business for its guests.”

Burger King and Antares CEO Michelle Alexander said the acquisition was “fantastic news” and that she was looking forward to working with a new owner who ‘understands the business and the industry and is committed to investing in the future through long-term Burger King brand. “in New Zealand.

“This announcement is great news after an unsettling period. The Antares management team is excited about the long-term prospects for the Burger King brand in New Zealand under Tahua ownership as we continue to deliver the best results for the business, our loyal employees and supplier partners and our valued guests. “

In a letter to staff in April, Alexander said that Burger King’s inability to earn revenue through lockdowns had created significant financial challenges for the company.

“As you know, we have applied for and received the government wage subsidy, and this is helping to pay all staff during the closing, however, with no sales since the closing started, the company does not currently have the cash flow to finance business creditors and rent payments. “Alexander said at the time.

The Herald has contacted Caliber Partners for further comment.

Since acquiring the Starbucks business, Tahua has opened three new stores and embarked on a major renovation program that will see all 24 stores renovated by 2023.