Cosi, Inc. Names Chief Restructuring Officer
September 30 2016 - 6:30AM
Cosi, Inc. (NASDAQ:COSI), the fast-casual restaurant company, today
announced that it has appointed Randy Kominsky of Alliance For
Financial Growth to serve as Chief Restructuring Officer,
effective Tuesday, October 4, 2016.
Mr. Kominsky, 61, has over 25 years of experience
working with companies and creditors in Chapter 11, out-of-court
restructurings, turnarounds, and crisis management. Since June
1996, he has been President of Alliance For Financial Growth and
has served in the capacity of CEO, CFO, board member, and advisor
to growth and troubled companies, focusing on increasing cash flows
and profitability and advising on mergers and acquisitions. From
May 1993 to June 1996, Mr. Kominsky was with Coopers & Lybrand
(predecessor to PriceWaterhouseCoopers), where he served as the
National Partner in Charge of the Bankruptcy Consulting Practice,
and was the Senior Partner responsible for Chapter 11
restructurings and for developing operational, financial, and
turnaround plans, financial models, and due diligence for the sale
of assets or infusion of new capital. From March 1980 to May 1993,
he served as the Assistant General Counsel of Ryder System, focused
on maximizing the recovery for all parties in many workouts and
Chapter 11 cases. Mr. Kominsky received his Juris Doctor from
Temple University Beasley School of Law and his Bachelor of
Business Administration from Temple University.
Mr. Kominsky will report to Patrick Bennett, Cosi’s
interim CEO & President, and will lead the Company’s
restructuring efforts during the pendency of the Chapter 11
proceedings. Mr. Kominsky’s appointment and the terms of his
engagement remain subject to the approval of the Bankruptcy Court.
As previously announced, Cosi and its subsidiaries
filed voluntary Chapter 11 petitions in the United States
Bankruptcy Court for the District of Massachusetts on September 28,
2016. The appointment of a Chief Restructuring Officer
acceptable to the lenders was required by the terms of the
previously disclosed non-binding Debtor-In-Possession (DIP)
Financing Term Sheet dated September 28, 2016. As previously
announced, in accordance with the sale process under Section 363 of
the Bankruptcy Code, notice of the proposed sale to the DIP lenders
or their designees will be given to third parties and competing
bids will be solicited. Cosi’s Board of Directors will manage
the bidding process and evaluate the bids, in consultation with
independent professional advisors and as overseen by the Bankruptcy
Court.
Court filings and other information related to the
restructuring proceedings are available on Cosi’s website at
www.getcosi.com.
About Così, Inc.
Così (http://www.getcosi.com) is an international
fast casual restaurant company. At the heart of every Cosi®
restaurant is an open-flame stone-hearth oven where the Così®
signature flatbread is made from scratch throughout the day.
The flatbread is made from a generations-old recipe and is part of
many Così® favorites. Così® was founded on the idea that
good-for-you food should be delicious. Menu items are made
using fresh ingredients and distinctive sauces and spreads to
create edgy flavors. The menu features made-to-order
sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, all
natural soups, signature Squagels®, artisan flatbread pizzas,
S`mores, snacks and desserts. Guests can also enjoy
handcrafted beverages and a variety of coffee-based and specialty
beverages.
Così® employees create a welcoming environment
where guests are invited to relax and enjoy great food. In
many cases, Così® is the cornerstone of the communities that they
are in and take pride in supporting community organizations and
local charities. There are currently 45 Company-owned and 31
franchise restaurants operating in fourteen states, the District of
Columbia, Costa Rica and the United Arab Emirates.
"Così," "(Sun & Moon Design)" and related marks
are registered trademarks of Così, Inc. in the U.S.A. and certain
other countries. Copyright © 2016 Così, Inc. All rights
reserved.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. This press release
contains statements that constitute forward- looking statements
under the federal securities laws. Forward-looking statements are
statements about future events and expectations and not statements
of historical fact. The words "believe," "may," "will," "should,"
"anticipate," "estimate," "expect," "intend," "objective," "seek,"
"plan," "strive," or similar words, or negatives of these words,
identify forward- looking statements. We qualify any
forward-looking statements entirely by these cautionary factors.
Forward-looking statements are based on management's beliefs,
assumptions and expectations of our future economic performance,
taking into account the information currently available to
management. Forward-looking statements involve risks and
uncertainties that may cause our actual results, performance or
financial condition to differ materially from the expectations of
future results, performance or financial condition we express or
imply in any forward-looking statements. Factors that could
contribute to these differences include, but are not limited to:
the results being reported in this release are unaudited and
subject to change; the cost of our principal food products and
supply and delivery shortages and interruptions; labor shortages or
increased labor costs; changes in demographic trends and consumer
tastes and preferences, including changes resulting from concerns
over nutritional or safety aspects of beef, poultry, produce, or
other foods or the effects of food-borne illnesses, such as E.
coli, "mad cow disease" and avian influenza or "bird flu";
competition in our markets, both in our business and in locating
suitable restaurant sites; our operation and execution in new and
existing markets; expansion into new markets including foreign
markets; our ability to attract and retain qualified franchisees
and our franchisees' ability to open restaurants on a timely basis;
our ability to locate suitable restaurant sites in new and existing
markets and negotiate acceptable lease terms; the rate of our
internal growth and our ability to generate increased revenue from
our existing restaurants; our ability to generate positive cash
flow from existing and new restaurants; fluctuations in our
quarterly results due to seasonality; increased government
regulation and our ability to secure required government approvals
and permits; our ability to create customer awareness of our
restaurants in new markets; the reliability of our customer and
market studies; cost effective and timely planning, design and
build out of restaurants; our ability to recruit, train and retain
qualified corporate and restaurant personnel and management; market
saturation due to new restaurant openings; inadequate protection of
our intellectual property; our ability to obtain additional capital
and financing, including debtor-in-possession (DIP) financing; our
success in restructuring the Company; our success in finding a
purchaser of our assets; adverse weather conditions which impact
customer traffic at our restaurants; and adverse economic
conditions.
Further information regarding factors that could
affect our results and the statements made herein are included in
our filings with the Securities and Exchange Commission.
Additional information is available on Così's
website at http://www.getcosi.com in the investor relations
section.
CONTACT:
Vicki Baue
InvestorRelations@getcosi.com
857-415-5030