General Assembly sells frozen pizza assets to Piano Piano in Toronto
By StockhouseNews Business and Operations Delivery Finance
Toronto – General Assembly Holdings has sold all of its assets related to its production, sale and distribution of frozen pizza. The company sold its frozen pizza assets to Piano Piano Inc., a private Italian restaurant.
The asset sale will improve balance sheet, reduce go forward investment and allow for financially viable refocus, General Assembly said in a news release.
The assets forming part of the sale include the equipment, contracts, inventory and intangible property solely related to the frozen pizza business.
Piano Piano has assumed senior indebtedness in the aggregate amount of $1.76 million owing to certain arm’s length creditors of the company and other liabilities of the company in respect of its manufacturing facility lease, equipment financing commitments and certain other accounts payable, totalling, together with the assumed debt, approximately $2.98 million.
Certain employees of the frozen pizza business have been offered new employment with Piano Piano and, effective as of the closing, have ceased employment with the General Assembly.
General Assembly retains ownership of its registered and unregistered trademarks and all related branding, logos and designs. The company has further agreed not to compete with the frozen pizza business for a period of five years.
General Assembly said it performed a strategic review of its operations – both frozen and fresh – and concluded the sale of the frozen pizza assets was the best option to allow it to refocus on its roots as a fast-casual premium restaurant, and move forward with a financially viable business model.
“Despite improving the financial performance of our frozen pizza operations over the last year, the team concluded the financial burden and timeline to achieve profitable scale were far too great to continue to operate the business model as a standalone competitor,” said Eric Balshin, interim CEO of General Assembly. “This transaction provides meaningful relief to our balance sheet at a time where financial stability is a critical requirement for companies of our scale in the public markets. The remaining restaurant business is strong and growing.”
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