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JACKSONVILLE, Fla. Whatever it is that restaurant stocks take instead of Viagra, Arthur Treacher's Inc. needed a dose.
Unable to consummate its mergers with either Miami Subs Corp. or Seattle Crab Co. because of its drooping stock price, Arthur Treacher's Inc., the struggling seafood chain based here postponed the acquisitions that would have created a 400-unit network of sharedmenu quick-service restaurants with systemwide sales of more than $200 million.
But despite the failed union, the three have formed a more serious relationship.
"We're still interested in doing something with them," said Bruce Galloway, who is chairman of Arthur Treacher's and also serves on Miami Sub's board of directors. "With the drop in our stock price and having to issue new shares to acquire Miami Subs, it was-just going to be too dilutive to us. But we're still looking at other options."
Treacher's, which has 111 outlets, currently offers its menu in three of Miami Subs' 190 units and plans to add the fish and chicken products to another 12 locations in the coming months. Galloway said the two companies also are close to signing a...