Denny's acquired for $620 million and going private.

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97prizm

Joined
May 25, 2005
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Hi All,

I saw this posted this morning. I didn't realize that Denny's was publicly traded. The deal worth $620 million is seeing TriArtisan Capital taking the struggling 72-year-old diner chain private. I'm curious how a private firm could pump up a struggling chain? It's not like they're going to start serving sushi or high dollar items on the menu. From a recent report diners all across America are closing.
 
Fine dining it ain't.
However, the ones located in truck stops have got to be gold mines.
If they aren't, they should be because they are always packed.
About once every five years or so, we go because the floor show never fails to disappoint.
Last time, one of the cooks quit mid shift.
When his apron came flying through the kitchen order window and hit the manager, the screaming began and the hub bub was EPIC!
Good times.
 
Nessism1 said:
Nothing wrong with a Grand Slam breakfast!
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I kind of wonder if they plan on taking it "upmarket" diner food? If you really want to give the waiter/waitress a heart attack eat an entire grand slam then when they ask "would you like anything else " tell them yeah the menu as I'm still hungry. My friend and I joked years ago and did this. The waitress had quite the look on her face.
 
zzyzzx said:
They usually don't. They strip it of assets, burden it with debt, then spin it off, then it usually declares bankruptcy. Something like that.
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I might have to look up the capital company to see what else they own or have purchased. If I dropped that kind of dough on a company I'd want a major return on my investment.
 
97prizm said:
I might have to look up the capital company to see what else they own or have purchased. If I dropped that kind of dough on a company I'd want a major return on my investment.
Click to expand...
That is how they make money off the deal. When I mentioned debt burden and sell off assets, the private equity firm gets that and leaves the company that they bought in poor financial condition for the spinoff (so that the private equity firm doesn't have to pay back the loans).
 
zzyzzx said:
They usually don't. They strip it of assets, burden it with debt, then spin it off, then it usually declares bankruptcy. Something like that.
Click to expand...

I just got a Goodfellas vibe from that statement.
 
Nessism1 said:
Back in the day...Denny's was always good after a night on the town. They were commonly open late, and some food on top of the alcohol helped settle things down before bed.
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I lived that life for a while. Every friday and saturday night out with friends shutting down the bars, then off to the Denny's.
Every "group" had their own little part of the diner
 
A Denny's opened in a nearby town several years ago in a good location, but it was only open for a couple of years. It just seems like the era for that kind of establishment has passed. People aren't going to sit down restaurants these days for what is essentially fast food on a plate.
 
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