In a licensing agreement announced today, retail grocery packaged goods from the H.J. Heinz Co. will soon carry the Boston Market label in the U.S. and abroad. The deal could provide the publicity and revenue generating profits that the Golden, CO-based Boston Market foodservice chain needs.
Last fall, amid $70 million, Boston Market filed for Chapter 11 bankruptcy protection and reorganization on October 5, 1998 in the U.S. Bankruptcy Court for the District of Arizona in Phoenix. The company also closed at least 178 of its 1143 restaurants. The arrangement also had the chain refinancing up to $35 million to keep the lights on and food hot.
The U.S. Bankruptcy Court in Arizona has approved the agreement, which is separate and independent of the restaurant business--but the publicity of millions of grocery shelf-facings won't hurt. The companies reached the licensing agreement on April 23, pending court approval. Under the agreement Heinz will pay Boston Chicken an undisclosed royalty fee based on sales.