Pinkberry, which operators some 260 stores in 20 countries, announced yesterday that it had been bought by Arizona-based Kahala Brands, which also owns other food court favorites like Blimpie, Tasti D-Lite, Ranch1, and Planet Smoothie, among others. The terms of the deal were not disclosed.
The frozen dessert chain seemingly came out of nowhere during the height of the celebrity-obsessed housing bubble. Much like the recently shuttered Kitson chain of boutique clothing stores, many people learned of Pinkberry by seeing reality stars and TV actors chowing down on the tangy treats.
But things started to go sour in recent years, most notably after company co-founder Young Lee was arrested in 2012 for assaulting a homeless man. He was later sentenced to seven years behind bars for his crime.
The post-bubble years have not been kind to the frozen yogurt industry, with some predicting a collapse like the one that befell heavily hyped cupcake chain Crumbs.
In a statement, Kahala CEO Michael Serruya says the acquisition will “help maximize the brand’s potential for continued evolution and success. It’s an excellent strategic fit for our company and presents an exciting opportunity for future development.”
by Chris Morran via Consumerist
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