Hamburger Hamlet Names New Chairman
Hamburger Hamlet Restaurants Inc., the casual restaurant chain that filed for Chapter 11 bankruptcy reorganization in December, has appointed a new chairman who will lead efforts to find a “white knight” for the company.
Richard E. Matthews, a management consultant and business turnaround specialist, succeeded James Gaffney, who resigned “to devote more time to other business ventures,” the Sherman Oaks-based company said.
Matthews’ mission, along with Hamburger Hamlet Chief Executive Shawn Holder, is to find “a strategic partner-white knight investor that will help us bring the company out of bankruptcy,” said Tom Whaley, vice president of human resources.
Whaley said the company is talking with several parties and has had “serious talks going on for the past three or four weeks.” An announcement could be made within about 30 days, he said.
Hamburger Hamlet is now operating profitably, Whaley said. The company has previously said it plans to emerge from Chapter 11 with its 15 strongest restaurants--down from the 31 locations it operated when it entered bankruptcy proceedings.
The 46-year-old chain ran into trouble when it expanded quickly in the late 1980s and early 1990s, adding restaurants in weak locations and where it had little name recognition.
It also failed to keep pace with trendier rivals in what has become a fiercely competitive, saturated marketplace.
Matthews is known for his skill in helping resuscitate ailing companies, a task he has performed at more than 20 businesses during the past 24 years. Mostly recently, he was chairman of Dolco Packaging Corp., a maker of packaging products that was sold in February.
