Big Boy Parent Company Files Chapter 11

Elias Brothers Corporation, the worldwide franchiser of Big Boy Restaurants, has filed for reorganization under Chapter 11 announced CEO Anthony Michaels. At the same time, Michaels announced the company has entered into a purchase agreement with a new company formed by local investor Robert G. Liggett, Jr. The sale, which is subject to customary conditions and the approval of the Bankruptcy Court, should close within 30-60 days.

The agreement with Liggett ends speculation about the future of one of Michigan's best known and loved companies. "By acquiring the viable core business and injecting substantial new capital, we will be able to enhance and grow the new Big Boy," said Liggett.

"The Big Boy name is a strong brand with high name recognition in the United States and around the globe. The company has a strong team of dedicated, talented, long-term employees who give Big Boy its heart and soul," said Liggett. "I see this as an exciting opportunity for future growth while maintaining the Big Boy tradition of excellence," Liggett added.

Bob Liggett, 57, is the Chairman, founder and sole owner of Liggett Broadcast Group that merged in 2000 with Citadel Communications Company. Liggett remains a Citadel shareholder and board member. Prior to founding what became Liggett Broadcast in 1970, he worked at several Detroit radio stations including WXYZ, WJBK and WJR. Between 1964 and 1971 he was the PA announcer for Detroit Red Wings games at Olympia Stadium.

On Liggett's offer to purchase the Big Boy chain that consists of 455 restaurants CEO Michaels said, "I am delighted to report our great Big Boy franchisee body enthusiastically supports this new development."

As part of the corporate restructuring to regain its financial footing, Elias Brothers Corporation closed 43 Big Boy Restaurants in Pennsylvania, West Virginia, Southeast Ohio and two in Michigan.

Despite the reorganization, sales have never been better at existing company-owned and franchised Big Boy Restaurants in Michigan said Michaels. "We have a strong base of franchisees who are operating top-notch restaurants. We want everyone to understand that Big Boy Restaurants worldwide will be fully operational during the reorganization. I want to reassure our customers that we'll always be focused on providing the same high quality food and great service in comfortable surroundings they have known and loved for over 65 years."

Michaels said the Big Boy brand is as strong as ever and recognized worldwide as an American icon. "Big Boy Restaurants' Franchise and company stores are experiencing great sales and we see a bright future ahead," he added.