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NEW YORK - ICH Corp., which two years ago owned the fastest-growing franchise territory in the Arby's system, has taken a detour out of the fast lane and into bankruptcy court here.
Arby's second-largest franchisee said it intends to keep open nearly all of its 240 restaurants, where roast-beef sandwiches are the staple and a new line of "Fresh Market" deli specialties is hailed as the chain's ticket to the top tier of America's fast-food eateries Growth of the franchise will continue, according to company officials, but at a severely reduced rate.
As part of a pact with Arby's brand owner, Fort Lauderdale, Fla.-based Triarc Restaurant Group Inc., ICH agreed to open some of its once-exclusive territory to other Arby's franchisees.
About two months after negotiating the new agreement, ICH, with its operating subsidiaries, San Diego-based Sybra Inc. and Sybra Connecticut Inc., on Feb. 5 petitioned the U.S. Bankruptcy Court in Manhattan for Chapter 11 reorganization and protection from its creditors.
Ironically, Sybra had been singled out two years earlier at an Arby's franchise convention in Las Vegas as the top growth company in the system, exceeding its development contract by opening more than 100 units over a three-year period.
The rapid pace of openings in a franchise territory that stretched into Michigan, Texas, Connecticut, Pennsylvania, New Jersey and Florida put ICH ahead of its development schedule going into 2001. But it was able to open only six additional units for the year, falling far behind the 20 it needed to comply with the franchise agreement.
This year ICH may open "one or two new units," according to John Bicks, who along with Robert Drechsler, is co-chairman and cochief executive of...