Hooters Airways
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Hooters Airways
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Aug 14, 2002
Hooters Chairman to Spend $50,000 Per Week While Considering Vanguard Airlines Bailout
By: Josh Freed
Associated Press Writer
KANSAS CITY, Mo. (AP) - Fly the friendly skies, indeed.
The man who runs Hooters restaurants is thinking about buying Vanguard Airlines, the Kansas City-based discount carrier that shut down and filed for bankruptcy last month.
A bankruptcy judge on Wednesday approved a plan by Robert H. Brooks to give Vanguard $50,000 per week for the next three weeks. The money will keep a skeleton staff at Vanguard to work on plans to get the airline flying again.
The cash also buys time for Brooks to examine the company's books to see if he wants to invest in it or buy it outright, according to A.J. Block, an Atlanta attorney for Brooks.
Brooks started a company called Hooters Air Inc. to make the payments.
"What he's doing is investigating toward some investment or acquisition relating to Vanguard," Block said.
Vanguard spokeswoman Elizabeth Cattell said it's too soon to know what a revamped Vanguard might look like under Brooks and Hooter Air, Inc.
"If it'll be 'Hooters girls' flight attendants, it's too early," Cattell said.
But she didn't dismiss the idea.
Cattell called Hooters a "fresh product."
She said there's more to Brooks than Hooters. After all, she said, he's a successful businessman who helped build Hooters into a successful, national chain. To Vanguard, he would bring financial strength, "which is what we've needed all along," she said.
Vanguard suspended flights, laid off 90 percent of its employees and filed for Chapter 11 bankruptcy protection on July 30. Even though it has been looking for a bailout, Vanguard president and chief executive officer Scott Dickson told employees in a letter that "it is likely this is a permanent shutdown."
Vanguard attorney Dan Flanigan said Brooks' interest came out of the blue.
"He came out of such an unusual place - no one would have predicted it would be him we would be talking to at this point," Flanigan said.
If Brooks doesn't buy Vanguard, it's not immediately clear whether the airline is likely to find any other suitors.
Flanigan said he believed discussions are happening with other potential investors, although he said he did not know details of those discussions. Analysts have expressed doubts, however, about Vanguard's prospects for getting financial help.
Vanguard served Myrtle Beach, S.C., where Brooks lives.
"So he is very much a supporter of Myrtle Beach, and the termination of Vanguard was disturbing to all of Myrtle Beach," Block said. Brooks also has a strong interest in aviation and owns an airplane, although he doesn't fly it himself, Block said.
Brooks is chairman of Hooters of America Inc., which owns or franchises 315 beach-themed restaurants known as much for the orange short-shorts and tight T-shirts of its waitresses as for its cuisine. He founded Eastern Foods Inc. in 1966, which makes dressings and sauces.
Vanguard had never shown a yearly profit. But Sept. 11 made its problems worse, and it became one of three airlines to file for bankruptcy since the terrorist attacks. The others were US Airways, on Sunday, and Midway Airlines.
Meanwhile, several airlines said Tuesday they will honor tickets held by Vanguard.
Last week, the U.S. Department of Transportation said other airlines must honor the tickets while charging a minimum fee, generally no more than $25, as long as there was space available on flights. Many customers had complained that other airlines were forcing them to buy new tickets.
AP-ES-08-14-02 1835EDT
Aug 14, 2002
Hooters Chairman to Spend $50,000 Per Week While Considering Vanguard Airlines Bailout
By: Josh Freed
Associated Press Writer
KANSAS CITY, Mo. (AP) - Fly the friendly skies, indeed.
The man who runs Hooters restaurants is thinking about buying Vanguard Airlines, the Kansas City-based discount carrier that shut down and filed for bankruptcy last month.
A bankruptcy judge on Wednesday approved a plan by Robert H. Brooks to give Vanguard $50,000 per week for the next three weeks. The money will keep a skeleton staff at Vanguard to work on plans to get the airline flying again.
The cash also buys time for Brooks to examine the company's books to see if he wants to invest in it or buy it outright, according to A.J. Block, an Atlanta attorney for Brooks.
Brooks started a company called Hooters Air Inc. to make the payments.
"What he's doing is investigating toward some investment or acquisition relating to Vanguard," Block said.
Vanguard spokeswoman Elizabeth Cattell said it's too soon to know what a revamped Vanguard might look like under Brooks and Hooter Air, Inc.
"If it'll be 'Hooters girls' flight attendants, it's too early," Cattell said.
But she didn't dismiss the idea.
Cattell called Hooters a "fresh product."
She said there's more to Brooks than Hooters. After all, she said, he's a successful businessman who helped build Hooters into a successful, national chain. To Vanguard, he would bring financial strength, "which is what we've needed all along," she said.
Vanguard suspended flights, laid off 90 percent of its employees and filed for Chapter 11 bankruptcy protection on July 30. Even though it has been looking for a bailout, Vanguard president and chief executive officer Scott Dickson told employees in a letter that "it is likely this is a permanent shutdown."
Vanguard attorney Dan Flanigan said Brooks' interest came out of the blue.
"He came out of such an unusual place - no one would have predicted it would be him we would be talking to at this point," Flanigan said.
If Brooks doesn't buy Vanguard, it's not immediately clear whether the airline is likely to find any other suitors.
Flanigan said he believed discussions are happening with other potential investors, although he said he did not know details of those discussions. Analysts have expressed doubts, however, about Vanguard's prospects for getting financial help.
Vanguard served Myrtle Beach, S.C., where Brooks lives.
"So he is very much a supporter of Myrtle Beach, and the termination of Vanguard was disturbing to all of Myrtle Beach," Block said. Brooks also has a strong interest in aviation and owns an airplane, although he doesn't fly it himself, Block said.
Brooks is chairman of Hooters of America Inc., which owns or franchises 315 beach-themed restaurants known as much for the orange short-shorts and tight T-shirts of its waitresses as for its cuisine. He founded Eastern Foods Inc. in 1966, which makes dressings and sauces.
Vanguard had never shown a yearly profit. But Sept. 11 made its problems worse, and it became one of three airlines to file for bankruptcy since the terrorist attacks. The others were US Airways, on Sunday, and Midway Airlines.
Meanwhile, several airlines said Tuesday they will honor tickets held by Vanguard.
Last week, the U.S. Department of Transportation said other airlines must honor the tickets while charging a minimum fee, generally no more than $25, as long as there was space available on flights. Many customers had complained that other airlines were forcing them to buy new tickets.
AP-ES-08-14-02 1835EDT
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Hooters Air Inc. to Buy Vanguard Assets
Looks like the previously reported deal is a go.
However, sadly:
... "there certainly won't be Hooters girls running up and down the aisles," Block said. "It's going to look like an airline. It's not going to look like a Hooters restaurant," he said...
______________________________________________
Hooters Owner Plans to Buy Assets of Vanguard Airlines
By Josh Freed Associated Press Writer
Published: Sep 6, 2002
KANSAS CITY, Mo. (AP) - The owner of the Hooters restaurant chain is preparing a bid to buy the assets of bankrupt Vanguard Airlines Inc.
The Kansas City-based airline will be renamed Hooters Air Inc. and may use the distinctive orange coloring, said A.J. Block, the Atlanta-based attorney for Hooters of America chairman Robert H. Brooks.
But, "there certainly won't be Hooters girls running up and down the aisles," Block said. "It's going to look like an airline. It's not going to look like a Hooters restaurant," he said.
Brooks has been giving Vanguard about $50,000 each week since mid-August to keep a skeleton staff while he considered whether to buy the assets of the idled low-fare carrier. He plans to submit a formal bid in the next few weeks, Block said.
The offer will be ready on Monday, but Brooks may wait until the following week to submit the proposal because of next week's anniversary of the Sept. 11 terrorist attacks.
Brooks did not respond to a request for an interview. A Vanguard spokeswoman did not immediately return a message from The Associated Press.
The new airline would fly about five of Vanguard's current routes, with more to be added later, Block said.
Block said he expects many Vanguard employees will be hired back. Vanguard laid off about 1,000 workers when it shut down operations and filed for bankruptcy on July 30.
All of Vanguard's airplanes were leased. Brooks would be buying assets such as airplane parts, ground equipment and furniture, Block said.
Brooks founded Eastern Foods Inc. in 1966, which makes dressings and sauces. Hooters was founded in 1983, and Brooks and a group of Atlanta investors bought expansion and franchise rights for the chain in 1984. Brooks eventually bought majority control and became chairman.
Vanguard, founded in 1994, had never shown a yearly profit. But Sept. 11 made its problems worse, and it - along with US Airways and Midway Airlines - have filed for bankruptcy since the terrorist attacks.
Block has said Brooks was interested in Vanguard partly because he lives Myrtle Beach, S.C., which was among the airline's destinations.
AP-ES-09-06-02 1818EDT
However, sadly:
... "there certainly won't be Hooters girls running up and down the aisles," Block said. "It's going to look like an airline. It's not going to look like a Hooters restaurant," he said...
______________________________________________
Hooters Owner Plans to Buy Assets of Vanguard Airlines
By Josh Freed Associated Press Writer
Published: Sep 6, 2002
KANSAS CITY, Mo. (AP) - The owner of the Hooters restaurant chain is preparing a bid to buy the assets of bankrupt Vanguard Airlines Inc.
The Kansas City-based airline will be renamed Hooters Air Inc. and may use the distinctive orange coloring, said A.J. Block, the Atlanta-based attorney for Hooters of America chairman Robert H. Brooks.
But, "there certainly won't be Hooters girls running up and down the aisles," Block said. "It's going to look like an airline. It's not going to look like a Hooters restaurant," he said.
Brooks has been giving Vanguard about $50,000 each week since mid-August to keep a skeleton staff while he considered whether to buy the assets of the idled low-fare carrier. He plans to submit a formal bid in the next few weeks, Block said.
The offer will be ready on Monday, but Brooks may wait until the following week to submit the proposal because of next week's anniversary of the Sept. 11 terrorist attacks.
Brooks did not respond to a request for an interview. A Vanguard spokeswoman did not immediately return a message from The Associated Press.
The new airline would fly about five of Vanguard's current routes, with more to be added later, Block said.
Block said he expects many Vanguard employees will be hired back. Vanguard laid off about 1,000 workers when it shut down operations and filed for bankruptcy on July 30.
All of Vanguard's airplanes were leased. Brooks would be buying assets such as airplane parts, ground equipment and furniture, Block said.
Brooks founded Eastern Foods Inc. in 1966, which makes dressings and sauces. Hooters was founded in 1983, and Brooks and a group of Atlanta investors bought expansion and franchise rights for the chain in 1984. Brooks eventually bought majority control and became chairman.
Vanguard, founded in 1994, had never shown a yearly profit. But Sept. 11 made its problems worse, and it - along with US Airways and Midway Airlines - have filed for bankruptcy since the terrorist attacks.
Block has said Brooks was interested in Vanguard partly because he lives Myrtle Beach, S.C., which was among the airline's destinations.
AP-ES-09-06-02 1818EDT
