O’Briens bought for unknown sum
The Denis Desmond-backed AIL group has taken over the chain’s outlets in the Republic, while O’Briens founder Brody Sweeney retains control over the stores located in the North and Britain.
The takeover fee will be disclosed by liquidator, Paul McCann of Grant Thornton, when he returns to the High Court to report on the conclusion of the liquidation proceedings.
“I am very pleased that such an important Irish brand will be taken forward by such a quality organisation,” said Mr McCann.
Prior to yesterday’s takeover, there had been some resistance to the AIL acquisition by a group of 29 O’Briens franchisees, represented by Wexford franchisee Michael Hayes, who told the High Court that AIL did not have their support. The franchisees also said that AIL owners Graeme Beere and Denis Desmond had refused to meet them.
During the reign of founder Brody Sweeney, the O’Briens group leased restaurant premises and then rented them out to its franchisees, who were the sub-leasees of the premises and the owners of the individual businesses.
This arrangement meant the O’Briens group paid the rents on the premises to the landlords, and then in turn charged the franchisees rent.
Some of the Irish-based franchisees had hoped to meet with their proposed new owners to discuss the group’s future business model. As outlined in the High Court, that meeting did not take place.
However, the takeover has been welcomed by some of the franchisees. In a statement issued by AIL, Cork-based franchisees Don Cahalane and Collette Moyles said: “We have invested heavily in the O’Briens brand and are delighted that this deal has gone through giving us and other franchisees the opportunity to continue trading using the business model that we originally invested in.”
Graeme Beere and Denis Desmond issued a statement saying they have always respected O’Briens as a brand.
Mr Beere said: “We have over 25 years of experience in the franchise sector and we are looking forward to working with franchisees, new and old, to ensure that in these testing retail times they feel renewed confidence in the brand, a brand that we believe strongly in.”
The Abrakebabra group said that the security of the investment will ensure that O’Briens will remain a prominent feature on the Irish retail landscape.
There are 85 O’Briens stores in Ireland. It has and more than 200 franchised outlets in all worldwide.
