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Private equity fails Eagle Boys BY JARED DICKSON I N S I D E T H I S I S S U E : NBC Capital, the Queensland private equity firm, has finally lost its appetite for the fast food industry after making an absolute meal of the Eagle Boys Pizza chain. Directors of the debt ridden and fractured chain called in SV Partners as voluntary ad- ministrators on July 14 after nine years under private equity control. The failure of the Eagle Boys chain is remi- niscent of Pacific Equity Partners' attempts to run franchise business models with the Angus & Robertson bookstore chains and the vacuum cleaning specialist chain, Godfreys. As with Godfreys, NBC Capital faced numer- ous disputes with franchisees during its period of ownership of Eagle Boys. The private equity firm, which had an 85 per cent majority shareholding in Eagle Boys Pizza, had acquired the chain in 2007 from its founder, Tom Potter, with the intention of taking a large slice of profit in a float on the Australian Stock Exchange. The usual timeframe for a private equity investment is around five years, but NBC Capital was forced to stick with the business for four further years with its prospects of a float flattened by poor profitability and a declining store network. At its peak, before NBC Capital bought into the business, Eagle Boys Pizza had around 340 stores and was the third largest chain in the take away pizza category. Three years ago, the company mapped out a plan for international expansion, starting with the Middle East. However, when the administrators were called in this month, there were just 114 standalones franchise stores and 12 Hoyts Cinema kiosks still trading, as well as 13 cor- porate outlets that were immediately marked for closure by SV Partners. The administrators are in the process of identifying restructuring measures, but are also scouting for a potential buyer for the franchise system. RRP $14.95 continued on page 06... INSIDE RETAIL WEEKLY FEATURE: Sustainability as business development Sustainable initiatives influencing consumers. p14 FROM THE SOURCE: Dominique Lamb Meet the new CEO of the National Retail Association. p20 NEWS: Banducci rejigs Woolies Woolworths' restruc- ture met with positivity from shareholders, investors. p02 NEWS: ORIAS wrap-up Interviews with online retail awards winners. p05 FEATURE: DJs launches in NZ David Jones brings upmarket downtown in Wellington. p10 OPINION: Retail unplugged The keys to customer engagement in a digital world. p16 Inside news and views on the world of retail since 1972 JULY 27 2016 F O R M O R E R E T A I L N E W S , V I S I T W W W . I N S I D E R E T A I L . C O M . A U I S S U E 2 1 0 2

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