HORN/HARDART <HOR> UNIT DISPOSES 33 RESTAURANTS
Horn and Hardart Co said it
disposed of 33 Bojangles' Chicken 'N Biscuits restaurants in
Florida as part of its previously announced retrenchment of its
Bojangles' subsidiary.
    Terms were not disclosed.
    The company said the restaurants in Orlando, Tampa and
Jacksonville markets have incurred the majority of Bojangles'
operating losses over the last two years.
    Due to the transaction, Horn and Hardart is projecting a
positive cash flow for the unit for the remainder of fiscal
1987.
    A spokesman said the disposition consists of a combination
of sale, lease and re-franchise agreements.
    The transaction involves one-quarter of the company-owned
Bojangles' restaurants and is in accordance with its
restructuring program announced in October 1986.
    A spokesman said the company is considering the sale or
spinoff of the 91-company owned additional restaurants, which
are profitable.
    The company said the disposition will result in no profit
or loss for the company because the costs were anticipated in a
34-mln-dlr reserve taken in the third quarter of 1986.
    The foodservice division, which includes Burger King,
Arby's and Tony Roma's, had a pre-tax operating loss of 29.6
mln dlrs in 1986, including the 34.0 mln dlr charge to
restructure Bojangles. Excluding Bojangles', the group had
revenues of 43.8 mln dlrs.
    The company said that, pursuant to the restructuring, it
has cut general and administrative expenses attributable to
Bojangle' by 35 pct.
    
 Reuter
