BUSINESS
09/08/2014 11:08 EDT | Updated 11/08/2014 05:59 EST

Restaurant company Imvescor names new CEO, wraps strategic review without a deal

MONCTON, N.B. - Restaurant chain company Imvescor Restaurant Group Inc. wrapped up its strategic review without a deal Monday and appointed Frank Hennessey as president and chief executive.

The company behind the Pizza Delight, Mikes, Scores and Baton Rouge restaurant chains, said none of the offers it considered adequately reflected "the company's value and prospects."

Imvescor (TSX:IRG) also said that it will review its capital allocation policy with Hennessey.

"This review will include the assessment of different alternatives to maximize and create value for the company's shareholders, including the possible establishment of a dividend," the company said.

Hennessey fills a vacancy left by Denis Richard, who resigned in July.

Imvescor said Hennessey was most recently president and chief executive of Bento Sushi, a chain with over 400 sushi bars in both Canada and the United States. He is also a former senior executive at Cara Operations Ltd, including president of Harvey's Restaurants.

The company also said Monday that Yves Devin, who was named chief operating officer in connection with the review process, is expected to resign following a short transition period.

Imvescor launched the strategic review in April to explore alternatives, including a possible sale, privatization or alliances with other companies.

The conclusion of the review came as Imvescor reported a profit of nearly $1.8 million or three cents per diluted share on $11.8 million in revenue for the quarter ended July 27. That compared with a loss of $29,000 or zero cents per diluted share on $12.3 million in revenue in the same period a year ago.

Same-store sales, which refers to those open for at least a year, were down 3.1 per cent.

Imvescor shares were down 18 cents at $1.83 in trading on the Toronto Stock Exchange on Monday.