FOG CUTTER CAPITAL GROUP INC. ANNOUNCES SALE OF COMMERCIAL LAND
May 31, 2006
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FOR:
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FOG CUTTER CAPITAL GROUP INC.
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CONTACT:
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Fog Cutter Capital Group Inc.
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(503) 721-6500 Andrew A. Wiederhorn, CEO
(503) 721-6500 David Dale-Johnson, Chief Investment Officer
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For Immediate Release
FOG CUTTER CAPITAL GROUP INC. ANNOUNCES SALE OF COMMERCIAL LAND
PORTLAND, Oregon.— May 31, 2006 -- Fog Cutter Capital Group Inc. (OTC: FCCG) has announced that it completed the sale of a 10.9 acre parcel of commercial land located in Wilsonville, Oregon. The Company will recognize a gain on the sale of approximately $1.2 million.
The property was originally acquired by Fog Cutter in April 1998, as part of the financing of a management buy-out through a sale/lease-back transaction for G.I. Joe’s, a Northwest sporting goods and automotive retailer. Originally, the properties included in the transaction included five retail buildings and a headquarters-distribution center, totaling approximately 445,000 square feet. The headquarters distribution center, located in Wilsonville, included an adjacent 10.9 acre tract of undeveloped land. In October 2000, the Company sold the five retail buildings and the office-distribution center to a third party. The Company retained the 10.9 acres as an investment.
The current sale of non-core investment property is consistent with Fog Cutter’s strategy to focus its efforts in developing, strengthening and expanding its restaurant operations. Fog Cutter acquired a controlling interest in Fatburger in August 2003 and today owns approximately 88% of the hamburger chain. There are currently 82 Fatburger restaurants located in 12 states and Canada. The restaurants specialize in fresh, made to order hamburgers and other specialty sandwiches. French fries, homemade onion rings, hand-scooped ice cream shakes and soft drinks round out the menu.
Fatburger plans to open additional restaurants throughout the United States, Canada and China. Franchisees currently own and operate 53 of the Fatburger locations and Fatburger has agreements to add approximately 230 new franchise locations in the United States and Canada.
Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the company which are identified as forward-looking, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. Such factors include but are not limited to, effectiveness of operating initiatives; success in advertising and promotional efforts; changes in global and local business and economic conditions, including their impact on consumer confidence; fluctuations in interest rates and to a lesser degree currency exchange rates; food, labor and other operating costs; competition, including pricing and marketing initiatives and new product offerings by the Company’s competitors; consumer preferences or perceptions concerning the Company’s product offerings; spending patterns and demographic trends; availability of qualified personnel (including restaurant personnel); severe weather conditions; existence of positive or negative publicity regarding the Company or its industry generally; the real estate market; the availability of real estate assets at acceptable prices; the opportunities in the specialty lending market; the creditworthiness and default experience of the Company's borrowers; the availability of financing; interest rates; European markets; effects of legal claims or Nasdaq or government investigations; cost and deployment of capital; changes in future effective tax rates; changes in governmental regulations; the impact of changes in management and changes in applicable accounting policies and practices. The foregoing list of important factors is not all-inclusive. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements have not been audited by, examined by, or subjected to agreed-upon procedures by independent accountants, and no third party has independently verified or reviewed such statements. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the company or any other person that the forward-looking statements contained in this release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
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