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TheBuzz Erika Engle |
Roy’s franchisee in Japan
enters rehab proceedingsA worrisome tip came into TheBuzz about the bankruptcy of Japan-based Soho's Hospitality Group Co. It is the franchisee for Roy Yamaguchi's two Roy's restaurants in Tokyo and a dozen other restaurant concepts in Japan including the famed Nobu Matsuhisa's restaurant.
But restaurateur Yamaguchi said he is not worried.
"It's not a devastating matter; it's business as usual for Soho," he said.
Tokyo Shoko Research Ltd. reported that Soho's civil rehabilitation bankruptcy filing at the end of May listed capital of 608 million yen, liabilities of about 7.5 billion yen and annual sales of 6.4 billion yen. The company's prospects had soured along with the Japanese economy.
Japan's rehabilitation process is similar to the U.S. Chapter 11 reorganization process, said Paul Alston, partner with law firm Alston, Hunt, Floyd and Ing in Honolulu.
"The company would settle up with creditors and maybe equity holders would get diluted or wiped out, but it is a process which leads to the survival of the company. At least, that is the hoped-for goal," said Alston, who is not involved with the Soho's case.
Roy's customer counts are going up and there are other reasons to be optimistic, Yamaguchi said.
"From what I understand, there are a lot of people that are interested in becoming partners with Soho at this time. They're lined up to become partners to take him out of bankruptcy ... going forward, it's good for everybody."
Yamaguchi introduced both Matsuhisa and Hollywood-handsome chef and restaurateur Todd English to Soho founder Sohou Tsukikawa, who later opened franchises for them in Japan.
Matsuhisa is global, but for English, the Olives restaurant in Tokyo was his first non-U.S. venture.
The bankruptcy hasn't soured Yamaguchi's friendship with Nobu or English, Yamaguchi said.
"No, because as of right now, we don't see any threat or interruption to any of our businesses."
The Roy's concept is steaming right along, planning its sixth and last Hawaii opening at Ko Olina Resort July 19.
"It's always expensive to do business in Hawaii," Yamaguchi said. The resort Roy's will be wholly owned by Roy's Holdings Inc.
Yamaguchi's mainland expansion caught fire after he entered into a partnership with Florida-based Outback Steakhouse Inc. in 1999. He had 14 restaurants at the time but there are now more than 30 restaurants on the mainland, in Japan, Hawaii and Guam.
Two more Roy's will open this year in Woodland Hills and Pasadena, Calif. In 2005 Yamaguchi plans restaurants in downtown Los Angeles, Miami and two other locations for which leases are pending. The new mainland locations are fifty-fifty ventures with Outback, he said.
Meanwhile, back in this year, Yamaguchi is planning a special dinner at Roy's Hawaii Kai Nov. 15. The only significance to the date is the playmates who are coming over.
"We're calling it the Five Japanese Chefs," he chuckled. Menu planning is in the works by Matsuhisa, Tetsuya Wakuda, Yuji Wakiya, Iron Chef French Hiroyuki Sakai and himself.
"We're happy that we're going to be all together," he said. Foodies who are in town that day will be happy that celebrity chefs often travel in packs.
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Erika Engle is a reporter with the Star-Bulletin. Call 529-4302, fax 529-4750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210, Honolulu, HI 96813. She can also be reached at: eengle@starbulletin.com